US Treasuries clearing reform: FICC-ing up the pieces

Central clearing of treasuries repo hero

Our experts discuss the SEC’s finalized rulemaking relating to central clearing requirements for US Treasury securities.

January 2024


Travis Keltner
Head of Secured Financing

James Redgrave

James Redgrave
Vice President of Global Thought Leadership

The US Securities and Exchange Commission has expanded central clearing requirements for US Treasury securities. The new rules will be enforced in phases, with the requirement to clear eligible secondary market transactions by December 31, 2025 and June 30, 2026, respectively, for cash and repo transactions. The rules will have significant implications for buy-side institutions’ internal processes and third-party relationships.

In this article, State Street’s Travis Keltner, head of Secured Financing and James Redgrave, vice president of Global Thought Leadership discuss the ruling and its impact.

The $26 trillion Treasury market — the deepest, most liquid market in the world — is the base upon which so much of our capital markets are built. Having such a significant portion of the Treasury markets uncleared increases system-wide risk. I am pleased to support these rules because they will help to make the Treasury market more efficient, competitive, and resilient.

Gary Gensler, SEC Chair

December 2023

Stay updated

Please send me State Street’s latest Insights.