The US Securities and Exchange Commission granted exemptive relief for certain Treasury repo transactions on Thursday, moving forward its push to shift US Treasury securities trading toward central clearing. The relief targets inter-affiliate repo transactions and non-US repo transactions, two areas where market participants had raised concerns about implementation challenges.
The SEC adopted the Treasury clearing rules in December 2023 but extended the original compliance dates to allow more time for firms to address operational and interpretive questions. The agency launched a dedicated webpage in September 2025 consolidating implementation guidance, frequently asked questions, staff statements and other resources to help market participants prepare.
Today's decision follows extensive engagement between the SEC and market participants regarding how the Treasury clearing rules apply to different transaction types. The agency published requests for relief on behalf of the industry for public comment before issuing the exemptions.
SEC Commissioner Mark T. Uyeda, whom Chairman Paul S. Atkins has designated to lead the Treasury clearing initiative, said the agency had listened to concerns about implementation. "Successful implementation requires a thoughtful approach that must account for the realities of cross-border transactions," Uyeda said. "Today's targeted relief addresses practical concerns while preserving the important benefits of central clearing."
The exemptive relief excludes inter-affiliate repo transactions and non-US repo transactions from the definition of eligible secondary market transactions subject to the clearing requirements. Market participants with questions during the implementation period can contact SEC staff in the Division of Trading and Markets by emailing [email protected] or calling 202-551-5777.
The relief is designed to ease the transition to central clearing while maintaining the oversight benefits the SEC sought when adopting the original rules, affecting how financial firms and institutional investors handle Treasury securities transactions.