The U.S. Securities and Exchange Commission (SEC) on Oct. 30 narrowed the transactions subject to its Treasury clearing mandate, excluding certain non-U.S. and inter-affiliate repo trades under specified conditions.
The relief removes the specified transactions from the category of eligible secondary market transactions covered by the clearing rules. One exemption applies to certain repurchase agreement, or repo, transactions involving non-U.S. counterparties, subject to limits and conditions.
Another exemption covers repos between a direct participant in a U.S. Treasury securities clearing agency and an affiliate that does not meet Section 3's investment company definition in the Investment Company Act of 1940. The affiliate must also qualify as an affiliated counterparty under Rule 17ad-22(a).
The SEC adopted Treasury clearing rules in December 2023. It later extended the initial compliance dates to give market participants more time to work through compliance, operational and interpretive issues. Before issuing the relief, the commission invited comment on requests submitted on behalf of market participants seeking exemptions for these types of transactions.
SEC Commissioner Mark T. Uyeda, whom SEC Chair Paul S. Atkins designated to oversee the transition to central clearing, said the agency considered cross-border realities. “Today’s targeted relief addresses practical concerns while preserving the important benefits of central clearing,” Uyeda said.
The SEC said it launched a webpage in September 2025 that gathers Treasury clearing updates, frequently asked questions, commission and staff statements, and other implementation resources. CME Group plans a Dec. 7, 2026, launch of CME Securities Clearing Inc., subject to regulatory approvals.
During implementation, market participants can send questions to the SEC’s Division of Trading and Markets at tradingandmarkets@sec.gov or call 202-551-5777.
