SEC issues new US Treasury clearing requests for public comment
21 April 2026 US
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The US Securities and Exchange Commission (SEC) has published for public comment a request for exemptive relief which requests targeted modifications to the inter鈥慳ffiliate exemption contained in the Treasury Clearing Rule.
The request 鈥� submitted by the Securities Industry and Financial Markets Association (SIFMA) 鈥� would expand the set of affiliates eligible to rely on the inter鈥慳ffiliate exemption and introduce a tailored activity鈥慴ased threshold for certain non鈥慤S affiliate transactions.
As stated in SIFMA鈥檚 request, many institutions depend on inter鈥慳ffiliate repo activity for internal liquidity, treasury, and collateral management 鈥� especially across time zones where covered clearing agencies do not operate on a 24鈥慼our basis.
These are real鈥憌orld challenges that firms face as they prepare for the upcoming compliance dates, notes the SEC.
However, the Commission highlights that the Treasury Clearing Rule aims to ensure that inter鈥慳ffiliate flows do not become a 鈥榖ackdoor鈥� to avoid clearing transactions that would otherwise be required to be submitted.
The SEC therefore welcomes comments on the notice and any data relevant to the potential effects of the requested relief on liquidity and competition, to help it better understand the potential effects if such relief were to be granted.
Secondly, the Commission has reopened the comment period on the requested exemptive relief submitted earlier this year by the Institute of International Bankers (IIB), which addresses the extraterritorial application of the Trade Submission Requirement.
The request concerns transactions executed entirely outside the US between non鈥慤S institutions 鈥� market participants and foreign regulators have raised significant questions about the extraterritorial scope of the clearing mandate.
Many non鈥慤S financial institutions operate through a mix of US and non鈥慤S branches and affiliates, and applying the Trade Submission Requirement to transactions occurring wholly overseas can pose operational challenges, create legal uncertainty regarding enforceability of netting arrangements, and raise practical issues given time鈥憐one differences and the absence of 24鈥慼our clearing, the SEC states.
Because both SIFMA鈥檚 and IIB鈥檚 requests for relief may intersect in important ways 鈥� including competitive, operational, and structural considerations 鈥� the SEC deems it appropriate to solicit further public input.
The SEC comments: 鈥淲e encourage commenters to address not only each request individually but also how the potential exemptions may, together, affect the overall environment for liquidity and competition in Treasury transactions and the core purposes of the Treasury Clearing Rule.鈥�
The request 鈥� submitted by the Securities Industry and Financial Markets Association (SIFMA) 鈥� would expand the set of affiliates eligible to rely on the inter鈥慳ffiliate exemption and introduce a tailored activity鈥慴ased threshold for certain non鈥慤S affiliate transactions.
As stated in SIFMA鈥檚 request, many institutions depend on inter鈥慳ffiliate repo activity for internal liquidity, treasury, and collateral management 鈥� especially across time zones where covered clearing agencies do not operate on a 24鈥慼our basis.
These are real鈥憌orld challenges that firms face as they prepare for the upcoming compliance dates, notes the SEC.
However, the Commission highlights that the Treasury Clearing Rule aims to ensure that inter鈥慳ffiliate flows do not become a 鈥榖ackdoor鈥� to avoid clearing transactions that would otherwise be required to be submitted.
The SEC therefore welcomes comments on the notice and any data relevant to the potential effects of the requested relief on liquidity and competition, to help it better understand the potential effects if such relief were to be granted.
Secondly, the Commission has reopened the comment period on the requested exemptive relief submitted earlier this year by the Institute of International Bankers (IIB), which addresses the extraterritorial application of the Trade Submission Requirement.
The request concerns transactions executed entirely outside the US between non鈥慤S institutions 鈥� market participants and foreign regulators have raised significant questions about the extraterritorial scope of the clearing mandate.
Many non鈥慤S financial institutions operate through a mix of US and non鈥慤S branches and affiliates, and applying the Trade Submission Requirement to transactions occurring wholly overseas can pose operational challenges, create legal uncertainty regarding enforceability of netting arrangements, and raise practical issues given time鈥憐one differences and the absence of 24鈥慼our clearing, the SEC states.
Because both SIFMA鈥檚 and IIB鈥檚 requests for relief may intersect in important ways 鈥� including competitive, operational, and structural considerations 鈥� the SEC deems it appropriate to solicit further public input.
The SEC comments: 鈥淲e encourage commenters to address not only each request individually but also how the potential exemptions may, together, affect the overall environment for liquidity and competition in Treasury transactions and the core purposes of the Treasury Clearing Rule.鈥�
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