At the recent 2025 U.S. Treasury Market Conference, Securities and Exchange Commission (“SEC”) Commissioner Mark T. Uyeda provided an update on the implementation of the Treasury Clearing Rules. In his remarks, Commissioner Uyeda said the SEC is focused on resolving regulatory ambiguities and addressing unforeseen issues associated with the implementation of the rules. He noted the concerns raised by market participants regarding the compliance deadlines and operational challenges, which led the SEC to extend the compliance deadlines by one year—to December 31, 2026, for cash transactions and June 30, 2027, for repo transactions. Read our prior post. He also noted that the SEC staff has engaged with industry stakeholders to tackle parts of the rules that were ambiguous. See our prior post. 

Commissioner Uyeda said that despite the significant progress that has been made on implementing the Treasury Clearing Rules, important issues remain, including:

  • Inter-affiliate Exemption:  The current exemption in the rules for inter-affiliate transactions may be too narrow, so the SEC is considering expanding the exemption to cover additional transaction types and to better accommodate internal liquidity and collateral management needs.
  • Extraterritorial Scope:  Non-U.S. firms trading with U.S. counterparties face uncertainty regarding clearing requirements.  The SEC is working to clarify jurisdictional questions to enable these firms to plan for compliance.
  • Operational and Margining Issues:  The industry has raised concerns about double margining for registered funds, cross-margining between securities and futures, the impact of failed trades or clearing agency outages, and the treatment of gross versus net margining for segregated customer accounts.
  • Pending Applications: The SEC is reviewing applications from CME Securities Clearing Inc. and ICE Clear Credit LLC seeking to register as covered clearing agencies, which Commissioner Uyeda said would impact implementation.

In closing, Commissioner Uyeda said that the SEC will continue to prioritize its engagement with market participants, industry working groups, and federal and international regulators. He said that interested parties should monitor developments and pointed them to the dedicated SEC Treasury Clearing implementation webpage, which consolidates relevant actions and guidance and will be updated as issues are addressed.