SEC Offers Exemptive Relief to Facilitate Central Clearing of U.S. Treasury Securities Amid New Rules
The SEC has granted exemptive relief to assist broker-dealers and market participants in central clearing of U.S. Treasury securities, following new rules adopted in December 2023. This relief specifically addresses inter-affiliate and non-U.S. repo transactions, recognizing the challenges faced during implementation. To ensure a smooth transition, compliance deadlines have been extended and a comprehensive webpage with resources has been launched. SEC Commissioner Mark T. Uyeda highlighted the need for a practical approach to cross-border transactions. Market participants are urged to engage with SEC staff for support throughout the implementation phase.
Statement Summary
The SEC has issued exemptive relief to assist broker-dealers and market participants in the central clearing of U.S. Treasury securities, following the adoption of Treasury clearing rules in December 2023. This relief addresses inter-affiliate and non-U.S. repo transactions and acknowledges the challenges faced by market participants during implementation. To support an orderly transition, compliance dates have been extended, and the SEC has launched a comprehensive webpage for updates and resources. SEC Commissioner Mark T. Uyeda emphasized the importance of a practical approach to cross-border transactions. Market participants are encouraged to reach out to SEC staff for assistance during this implementation period.
Original Statement
The Securities and Exchange Commission took another step forward today to assist broker-dealers and other market participants on the path to central clearing of U.S. Treasury securities by issuing exemptive relief related to inter-affiliate repo transactions and non-U.S. repo transactions. The SEC adopted the Treasury clearing rules in December 2023. To provide additional time for further engagement on compliance, operational, and interpretive questions, and to facilitate an orderly implementation of the rules, the Commission extended the original compliance dates and announced its continuing readiness to engage with market participants.
In September 2025, the SEC launched a one-stop webpage that consolidates the latest implementation updates, FAQs, Commission and staff statements, and other resources. Today’s relief follows extensive public engagement regarding the scope of the Treasury clearing rules as they apply to these types of 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, whom Chairman Paul S. Atkins has designated to lead the agency’s initiative to oversee the transition to central clearing of U.S. Treasury security transactions. “Successful implementation requires a thoughtful approach that must account for the realities of cross-border transactions. Today’s targeted relief addresses practical concerns while preserving the important benefits of central clearing.”
Specifically, this exemptive relief excludes from the definition of eligible secondary market transactions: While preparing for compliance during the implementation period, market participants can contact SEC staff in the Division of Trading and Markets directly with questions by emailing tradingandmarkets or calling 202-551-5777.