The US Securities and Exchange Commission has granted targeted relief from the central-clearing rules for Treasury securities, excluding specified inter-affiliate and non-US repurchase transactions.
The Commission adopted the broader Treasury clearing framework in 2023 and later extended compliance dates as market participants raised operational and cross-border questions. The October 30 orders respond to requests that were published for comment.
Relief covers certain repo transactions involving non-US counterparties, subject to limits and conditions. It also covers transactions between a direct participant in a US Treasury securities clearing agency and an affiliate that is not an investment company, provided the affiliate otherwise falls within the rule’s definition of an affiliated counterparty.
The exemptions are narrow rather than a retreat from central clearing. Transactions outside their terms remain subject to the implementation timetable and the definition of an eligible secondary-market transaction. The SEC said the change addresses practical cross-border concerns while preserving the risk-management benefits of clearing. Its October 30 release links the governing orders.
