SIFMA publishes Treasury clearing framework
19 December 2025 US
Image: rrodrickbeiler/stock.adobe.com
SIFMA has published a report with Ernst & Young titled 鈥楿S Treasury and Repo Clearing Done-Away Model Design Considerations鈥�.
The report provides a guideline and framework for baseline US Treasury done-away clearing requirements under the 网爆吃瓜 and Exchange Commission鈥檚 (SEC) upcoming Treasury Clearing Rule.
This report is a follow up to the 鈥楿S Treasury Central Clearing Industry Considerations Report鈥� published in November 2024.
The document has four objectives: outline the desired done-away flows for different execution paths as defined by market participants; describe roles and responsibilities of market participants, covered clearing agencies (CCAs), trading venues, and other technology platforms across the trade lifecycle; identify the core capabilities and data requirements need to be established to enable the desired done-away flows; and Indicate proposed owners for developing and implementing the defined core capabilities.
Joe Seidel, SIFMA chief operating officer, states: 鈥淎s we approach the effective date for central clearing of US Treasury securities, SIFMA is working to support the industry with the transition to ensure there is as little disruption as possible to this important market.
鈥淭his report, in conjunction with our other efforts, is designed to help firms with their steps to preparedness.鈥�
In December 2023, the SEC approved a final rule which mandates the clearing of certain eligible secondary market transactions in US Treasury securities.
It triggered a significant structural change to the US Treasury market and will have significant impacts on broker-dealers, institutional investors, asset managers, hedge funds, interdealer brokers, principal trading firms, banks, and CCAs.
The first compliance date is 31 December 2026, for eligible cash market transactions, and 30 June 2027, for eligible repo market transactions.
Neal Ullman, managing director, Financial Services Consulting, EY, says: 鈥淎s the effective date for central clearing of US Treasury securities approaches, the industry faces a critical transition that must be managed carefully to avoid disruption.
鈥淭his report provides key design considerations for implementing a done-away model to help prepare for compliance, while reinforcing the importance of maintaining market stability and liquidity.鈥�
The report is designed to capture and organise the proposed done-away flows and core requirements based on input and subject-matter analysis from market participants on both the buy side and sell side.
Through input collected for the November 2024 Considerations Report, eight total industry challenges were highlighted related to open concerns and specific elements to design a controlled and resilient US Treasury Clearing done-away model.
SIFMA organised a done-away steering committee consisting of both buy and sell side representation to help discuss, prioritise, ideate, and document a proposed done-away model that includes operational flows, core capabilities required, and roles and responsibilities of each party involved.
The following challenges were prioritised for this effort: supporting data capabilities, pre-trade limit checks for execution paths, operational flows and submission to CCAs, and bunched orders/allocations.
The report provides a guideline and framework for baseline US Treasury done-away clearing requirements under the 网爆吃瓜 and Exchange Commission鈥檚 (SEC) upcoming Treasury Clearing Rule.
This report is a follow up to the 鈥楿S Treasury Central Clearing Industry Considerations Report鈥� published in November 2024.
The document has four objectives: outline the desired done-away flows for different execution paths as defined by market participants; describe roles and responsibilities of market participants, covered clearing agencies (CCAs), trading venues, and other technology platforms across the trade lifecycle; identify the core capabilities and data requirements need to be established to enable the desired done-away flows; and Indicate proposed owners for developing and implementing the defined core capabilities.
Joe Seidel, SIFMA chief operating officer, states: 鈥淎s we approach the effective date for central clearing of US Treasury securities, SIFMA is working to support the industry with the transition to ensure there is as little disruption as possible to this important market.
鈥淭his report, in conjunction with our other efforts, is designed to help firms with their steps to preparedness.鈥�
In December 2023, the SEC approved a final rule which mandates the clearing of certain eligible secondary market transactions in US Treasury securities.
It triggered a significant structural change to the US Treasury market and will have significant impacts on broker-dealers, institutional investors, asset managers, hedge funds, interdealer brokers, principal trading firms, banks, and CCAs.
The first compliance date is 31 December 2026, for eligible cash market transactions, and 30 June 2027, for eligible repo market transactions.
Neal Ullman, managing director, Financial Services Consulting, EY, says: 鈥淎s the effective date for central clearing of US Treasury securities approaches, the industry faces a critical transition that must be managed carefully to avoid disruption.
鈥淭his report provides key design considerations for implementing a done-away model to help prepare for compliance, while reinforcing the importance of maintaining market stability and liquidity.鈥�
The report is designed to capture and organise the proposed done-away flows and core requirements based on input and subject-matter analysis from market participants on both the buy side and sell side.
Through input collected for the November 2024 Considerations Report, eight total industry challenges were highlighted related to open concerns and specific elements to design a controlled and resilient US Treasury Clearing done-away model.
SIFMA organised a done-away steering committee consisting of both buy and sell side representation to help discuss, prioritise, ideate, and document a proposed done-away model that includes operational flows, core capabilities required, and roles and responsibilities of each party involved.
The following challenges were prioritised for this effort: supporting data capabilities, pre-trade limit checks for execution paths, operational flows and submission to CCAs, and bunched orders/allocations.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
