SEC to tackle 鈥榦utstanding issues鈥� in US Treasury Clearing Rules
14 November 2025 US
Image: eurobanks/stock.adobe.com
At the recent 2025 US Treasury Market Conference, Commissioner Mark T. Uyeda said the US 网爆吃瓜 and Exchange Commission (SEC) is in the midst of implementing the US Treasury Clearing Rules, and that he will oversee the efforts towards this implementation.
These rules mandate that covered clearing agencies in the US Treasury market adopt policies and procedures designed to require their members to submit for clearing certain specified secondary market transactions.
Despite an enormous amount of time and resources invested by dealers, buy side institutions, asset managers, clearing banks, and infrastructure providers, more work is required as 鈥渙utstanding issues remain鈥�.
According to Uyeda, the scope of requirements for inter-affiliate transactions is 鈥渁mong the most urgent questions in need of resolution鈥�.
He explains: 鈥淢any global firms transact heavily among various affiliates for liquidity, collateral management, and hedging purposes. When the Commission adopted the rule, it recognised that the benefits sought by the rule are not realised by subjecting such internal trades to the same requirements as external trades.鈥�
Therefore, the final Treasury Clearing Rules contain an exemption for trades between affiliates. However, market participants have stressed that this exemption, as adopted, may be too restrictive to be utilised.
The Commission and its staff have been considering expanding the inter-affiliate exemption to include cash transactions and other types of affiliates.
Related areas under consideration are how the exemption could address transactions for internal liquidity and collateral management, and how the concept of affiliate, within the inter-affiliate exemption, might be broadened.
Another question is the extraterritorial scope of the Treasury Clearing Rules 鈥� non-US firms that trade with US counterparties do not typically clear their trades in US Treasury securities, and they may need to establish clearing arrangements with intermediaries or with central counterparties.
Without further clarity, such firms have not been able to determine their options for clearing access or their costs. Prior to the government shutdown on 1 October, the SEC staff had been engaging with market participants to understand jurisdictional issues.
鈥淲e intend to move as quickly as possible on these matters once full operations of the SEC are restored,鈥� Uyeda said.
The Commission is aware of and considering other issues that the industry has raised, including: double margining issues for registered funds regarding cleared repos; cross-margining between securities and futures transactions at the customer level; and the impact of failed trades or clearing agency outages on the Treasury Clearing Rules.
In addition, the Commission is currently considering two applications for registration as a clearing agency from entities that are seeking to clear US Treasury securities. Specifically, they are from CME 网爆吃瓜 Clearing and ICE Clear Credit.
Concluding, Uyeda said: 鈥淭he Commission intends to do our part, by providing clarity, guidance, and where appropriate, exemptive relief or rule amendments, so that market participants can proceed with planning and deploying the resources needed to fully implement the Treasury Clearing Rules.
鈥淲e have broad consensus on our end goal: a US Treasury market that remains deep, liquid, transparent, and resilient. While we collaborate to solve challenges along the way, we must keep that objective in sight.鈥�
These rules mandate that covered clearing agencies in the US Treasury market adopt policies and procedures designed to require their members to submit for clearing certain specified secondary market transactions.
Despite an enormous amount of time and resources invested by dealers, buy side institutions, asset managers, clearing banks, and infrastructure providers, more work is required as 鈥渙utstanding issues remain鈥�.
According to Uyeda, the scope of requirements for inter-affiliate transactions is 鈥渁mong the most urgent questions in need of resolution鈥�.
He explains: 鈥淢any global firms transact heavily among various affiliates for liquidity, collateral management, and hedging purposes. When the Commission adopted the rule, it recognised that the benefits sought by the rule are not realised by subjecting such internal trades to the same requirements as external trades.鈥�
Therefore, the final Treasury Clearing Rules contain an exemption for trades between affiliates. However, market participants have stressed that this exemption, as adopted, may be too restrictive to be utilised.
The Commission and its staff have been considering expanding the inter-affiliate exemption to include cash transactions and other types of affiliates.
Related areas under consideration are how the exemption could address transactions for internal liquidity and collateral management, and how the concept of affiliate, within the inter-affiliate exemption, might be broadened.
Another question is the extraterritorial scope of the Treasury Clearing Rules 鈥� non-US firms that trade with US counterparties do not typically clear their trades in US Treasury securities, and they may need to establish clearing arrangements with intermediaries or with central counterparties.
Without further clarity, such firms have not been able to determine their options for clearing access or their costs. Prior to the government shutdown on 1 October, the SEC staff had been engaging with market participants to understand jurisdictional issues.
鈥淲e intend to move as quickly as possible on these matters once full operations of the SEC are restored,鈥� Uyeda said.
The Commission is aware of and considering other issues that the industry has raised, including: double margining issues for registered funds regarding cleared repos; cross-margining between securities and futures transactions at the customer level; and the impact of failed trades or clearing agency outages on the Treasury Clearing Rules.
In addition, the Commission is currently considering two applications for registration as a clearing agency from entities that are seeking to clear US Treasury securities. Specifically, they are from CME 网爆吃瓜 Clearing and ICE Clear Credit.
Concluding, Uyeda said: 鈥淭he Commission intends to do our part, by providing clarity, guidance, and where appropriate, exemptive relief or rule amendments, so that market participants can proceed with planning and deploying the resources needed to fully implement the Treasury Clearing Rules.
鈥淲e have broad consensus on our end goal: a US Treasury market that remains deep, liquid, transparent, and resilient. While we collaborate to solve challenges along the way, we must keep that objective in sight.鈥�
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