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Hard Work Goes On Following the U.S. Treasury Clearing Deadline Delay

August 1, 2025 | 5 minutes reading time | By John Hintze

In anticipation of improved risk management and resilience, volumes climb at FICC, the incumbent central counterparty, with new competition on the way.

Delayed deadlines for compliance with the Securities and Exchange Commission’s U.S. Treasury clearing mandate are allowing more time for market players to adjust operationally and for new competitors to hone their offerings.

The year-long extensions announced in February – to December 31, 2026, for eligible cash market transactions, and June 30, 2027, for repurchase agreement (repo) transactions – were meant to “facilitate an orderly implementation” of rules adopted in December 2023 to mitigate risk and enhance resilience in what then-SEC Chair Gary Gensler described as “the deepest, most liquid market in the world.”

Scott O’Malia, CEO of the International Swaps and Derivatives Association, one of many voices advocating delay, called the move “very welcome” but also “the absolute minimum extension that is necessary – several critical operational, regulatory and legal issues need to be resolved, and this will take time.”

“With $36 trillion in bills, bonds and notes outstanding, the U.S. Treasury market is the largest and most liquid government debt market in the world. This is, literally, how the U.S. government funds itself,”...

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Article Members Only

Hard Work Goes On Following the U.S. Treasury Clearing Deadline Delay

August 1

In anticipation of improved risk management and resilience, volumes cl...

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