SEC Issues Exemptive Relief from Treasury Clearing Requirements for Certain Inter-Affiliate and Non-U.S. Repo Transactions
The U.S. Securities and Exchange Commission on October 30 took another step forward in assisting broker-dealers and other market participants on the path to central clearing of U.S. Treasury securities, issuing exemptive relief from the Treasury clearing requirements for certain inter-affiliate and non-U.S. repo transactions.
According to the Commission, the relief relates to inter-affiliate repo arrangements and certain non-U.S. transactions. The Treasury Clearing Rule, adopted in December 2023, requires covered clearing agencies that provide central counterparty services for U.S. Treasury securities to maintain written policies and procedures requiring their direct participants to submit for clearance and settlement all eligible secondary market transactions in U.S. Treasury securities to which they are a counterparty.
The Commission previously extended the original compliance dates for the rule by one year, to December 31, 2026, for eligible cash market transactions and June 30, 2027, for eligible repo market transactions. Earlier this year, the Commission published two separate requests for exemptive relief for public comment: one submitted by the Institute of International Bankers (IIB) seeking relief for certain non-U.S. transactions, and one submitted by the Securities Industry and Financial Markets Association (SIFMA) seeking targeted modifications to the inter-affiliate exclusion, including relief from the "outward-facing condition" for certain repo transactions between non-U.S. affiliates and non-U.S. parties below a certain threshold.
SEC Chairman Paul Atkins has announced that Commissioner Mark Uyeda is leading the agency's continuing efforts related to central clearing of U.S. Treasury securities, and the Commission says it continues to support the orderly and effective implementation of the rule.
Source: GSM · USA
Source: GSM · USA (original Chinese edition)
Photo: 图：美国证监会总部大楼（华盛顿）。AgnosticPreachersKid 摄，CC BY-SA 3.0，经 Wikimedia Commons。 / U.S. Securities and Exchange Commission headquarters in Washington. Photo by AgnosticPreachersKid, CC BY-SA 3.0, via Wikimedia Commons.
