SEC Delays Treasury Clearing Rules

On February 25, the Securities and Exchange Commission (SEC) extended the compliance date for the central clearing of certain U.S. Treasury securities and also delayed certain margin requirements. In a press release the Commission noted it delayed compliance dates “by one year to Dec. 31, 2026, for eligible cash market transactions, and June 30, 2027, for eligible repo market transactions.” The clearing rule, finalized under Chair Gary Gensler, would in part, require the central clearing of cash market and eligible repo market transactions in the secondary market. It would also require the clearing parties to have written policies and procedures to ensure proper clearing under the rule. Additionally, the SEC also issued a temporary exemption from the rule that would require clearing agencies to have written policies and procedures that an indirect participant’s margin be segregated. SEC Acting Chairman Mark T. Uyeda stated, “This one-year extension provides additional time to implement and validate operational changes.” The delay in implementation comes after significant industry pushback on the timeline for implementation.

Click here to read an SEC press release covering the extended compliance dates and delays from certain portions of the final rule.