The U.S. Securities & Exchange Commission published an update on implementation of its Treasury Clearing rule and released new staff FAQs clarifying that certain “mixed CUSIP” triparty repo transactions are not required to be cleared under the rule. The statement also reiterates that the compliance dates remain December 31, 2026 for cash transactions and June 30, 2027 for repo, and that the Commission does not intend to consider further extensions at this time. The Treasury Clearing rule, adopted in December 2023, mandates clearing of certain eligible secondary market transactions in U.S. Treasury securities by direct participants in covered clearing agencies. Implementation work has produced staff guidance to date on accounting and broker-dealer financial responsibility issues, including (i) Office of the Chief Accountant staff not objecting, based on specific facts presented, to agent clearing members treating cleared repo trades as agency transactions for accounting purposes, and (ii) Trading and Markets staff FAQs indicating broker-dealers may pre-fund segregated margin with U.S. dollars as well as U.S. Treasury securities under Exchange Act Rule 15c3-3a. The newly issued Trading and Markets FAQs address triparty repo and indicate that, in the circumstances described, a general collateral triparty repo that becomes collateralized in part by U.S. Treasury securities after execution (a “mixed CUSIP” triparty repo) would not be a transaction that must be cleared. Outstanding implementation topics under consideration include potential changes to the interaffiliate exemption, clarification of extraterritorial scope, registered fund “double margining” issues for cleared repos, customer-level cross-margining between securities and futures, treatment of failed trades and clearing agency outages, and gross versus net margin approaches for segregated customer accounts under Rule 15c3-3a. The Commission is also considering two applications for registration as a clearing agency by entities seeking to clear U.S. Treasury securities, and has created a Treasury clearing implementation webpage to consolidate prior materials and post additional items as work progresses.
U.S. Securities & Exchange Commission2025-09-30
U.S. Securities & Exchange Commission issues Treasury clearing FAQs on mixed CUSIP triparty repos and reiterates December 2026 and June 2027 compliance dates
The U.S. Securities & Exchange Commission updated on its Treasury Clearing rule, clarifying that certain "mixed CUSIP" triparty repo transactions are exempt from clearing requirements. Compliance dates remain December 31, 2026, for cash transactions and June 30, 2027, for repo, with no further extensions planned. The Commission is also considering changes to interaffiliate exemptions and other outstanding implementation topics.