SEC grants relief for inter-affiliate and non-US repo trades in Treasury clearing

Inter-affiliate repo transactions and repo deals struck outside the United States will not have to pass through a central clearing house under the SEC's Treasury clearing regime, the regulator said, issuing exemptive relief that narrows the definition of an eligible secondary market transaction.

The relief follows what the SEC described as extensive public engagement on how the rules, adopted in December 2023, apply to these trades, including requests for relief it published for comment. The Commission had already pushed back the original compliance dates to allow more time for questions on compliance, operations and interpretation to be resolved.

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 US Treasury security transactions, said the Commission had listened carefully to market participants about the challenges of implementing the rules. He said successful implementation requires a thoughtful approach that must account for the realities of cross-border transactions, and that the targeted relief addresses practical concerns while preserving the important benefits of central clearing.

The SEC said the relief is intended to keep broker-dealers and other participants moving toward central clearing of US Treasury securities while removing obstacles specific to cross-border and group-internal repo activity. In September 2025 the agency launched a one-stop webpage gathering implementation updates, FAQs, Commission and staff statements and other resources.

Market participants preparing for compliance can put questions directly to staff in the Division of Trading and Markets by email or phone during the implementation period, the SEC said.