U.S. Securities and Exchange Commission extends compliance dates for U.S. Treasury clearing requirements and delays margin segregation enforcement to 30 September 2025

The U.S. Securities and Exchange Commission extended by one year the compliance dates for Exchange Act Rule 17ad-22(e)(18)(iv)(A) and (B), which require a U.S. Treasury securities covered clearing agency providing central counterparty services to ensure direct participants submit all eligible secondary market U.S. Treasury transactions for clearance and settlement. The new compliance dates are 31 December 2026 for eligible cash market transactions and 30 June 2027 for eligible repo market transactions. The Commission also issued a temporary exemption from enforcement timing for Exchange Act Rule 17ad-22(e)(6)(i), which requires covered clearing agencies to calculate, collect, and hold margin for a direct participant’s proprietary U.S. Treasury positions separately from margin related to indirect participant activity that accesses the clearing agency via that direct participant. Under the exemption, a U.S. Treasury securities covered clearing agency is not required to enforce its written policies and procedures for this requirement until 30 September 2025, rather than the original 31 March 2025 compliance date. The exemption does not prevent a covered clearing agency from implementing the policies for participants prepared to comply, and where a direct participant offers certain access models or segregated margin accounts, the covered clearing agency must enforce the relevant rules and the direct participant must comply. The SEC framed the timing changes as providing additional time to implement and validate operational changes and to engage further on compliance, operational, and interpretive questions to support orderly implementation.