DTCC announced that the Depository Trust Company (DTC), as part of the annual renewal of the line-of-credit facility, will implement the following changes to modify collateral value for certain securities, which may affect the value of positions applied to the Collateral Monitor:
1. Collateral valuation for corporate notes or bonds rated B1 to B3, will be updated to use a haircut value of 70%, up from 50%.
2. No collateral value will be given for any ETF or other investment vehicle that includes bitcoin or any other cryptocurrency as an underlying investment, hence will be subject to a 100% haircut.