In implementation remarks published by the U.S. Securities and Exchange Commission, progress under the Treasury Clearing Rule was reviewed alongside unresolved questions about its application to non-U.S. and inter-affiliate transactions. Daily Treasury volumes cleared through the Fixed Income Clearing Corporation are now about 165% higher than before the rule was proposed, while firms have developed standard documentation, redesigned workflows and conducted end-to-end testing. Over the past year, the SEC has approved measures to expand access and improve margin efficiency at FICC, as well as the registration of CME Securities Clearing and ICE Clear Credit as additional clearing agencies. Staff guidance and targeted relief have addressed customer reserve calculations, outages, failed trades and private funds’ use of wholly owned captive clearing subsidiaries. The SEC continues to evaluate relief requests covering wholly overseas trades and a broader inter-affiliate exception, with a firm-specific cap on uncleared non-U.S. repo activity identified as one possible approach. A market-wide threshold remains under consideration, although its potential use, calculation and administration are unresolved. The SEC does not currently intend to extend the compliance dates of Dec. 31, 2026, for eligible cash Treasury transactions and June 30, 2027, for eligible repo transactions.

Original source