Government Securities Clearing Corporation - GSCC

The Government Securities Clearing Corporation (GSCC) was a nonprofit subsidiary of the National Securities Clearing Corporation (NSCC) that provided clearing and settlement of US government securities.

In 2003, GSCC was merged with the MBS Clearing Corporation to form the Fixed Income Clearing Corporation (FICC), which still provides the same services as before through two divisions: the Government Securities Division and the Mortgage-Backed Securities Division.

It’s nonprofit, because the Federal Reserve was a bit uncomfortable with the old status quo of how US government securities were being cleared and settled; they were being put at risk, and were very inefficient (economists hate inefficiency).

The GSCC touches the rainbow of government securities (Treasury bonds and bills, zero-coupon securities, government agency securities, etc.). You name it, they’ve netted and settled it.