The U.S. Securities and Exchange Commission on Friday issued exemptive relief from Treasury clearing requirements for certain inter-affiliate and non-U.S. repurchase agreement, or repo, transactions.
The commission said it issued the relief to assist broker-dealers and other market participants on the path to central clearing of U.S. Treasury securities. The SEC adopted the Treasury clearing rules in Dec. 2023.
The action continues the agency’s efforts to support ongoing implementation of the rules, the commission said. It follows extensive public engagement on the scope of the rules as they apply to these transactions, including requests for relief on behalf of market participants that the SEC published for comment.
“The Commission has listened carefully to market participants about the challenges of implementing our Treasury clearing rules,” said SEC Commissioner Mark T. Uyeda. Chairman Paul S. Atkins has designated Uyeda to lead the agency’s initiative to oversee the transition to central clearing of U.S. Treasury security transactions.
Uyeda said putting the rules into effect has to account for cross-border transactions. “Today’s targeted relief addresses practical concerns while preserving the important benefits of central clearing,” he said.
The relief excludes two kinds of transactions from the definition of eligible secondary market transactions. The first is certain repo transactions involving non-U.S. counterparties, subject to specified limits and conditions. The release did not describe those limits and conditions.
The second is certain repo transactions between a direct participant of a U.S. Treasury securities clearing agency and an affiliated entity. That entity must not be an investment company as defined in Section 3 of the Investment Company Act of 1940. It must otherwise meet the definition of an affiliated counterparty in Rule 17ad-22(a).
The commission said it extended the original compliance dates to provide additional time for further engagement on compliance, operational, and interpretive questions, and to facilitate an orderly implementation of the rules. The release did not state the new dates. The commission announced its continuing readiness to engage with market participants.
In Sept. 2025, the SEC launched a one-stop webpage that consolidates the latest implementation updates, frequently asked questions, commission and staff statements, and other resources.
Market participants preparing for compliance during the implementation period can contact staff in the Division of Trading and Markets with questions, the commission said.