SEC grants exemptive relief on Treasury clearing for some repo trades

What the SEC carved out

The Securities and Exchange Commission said on October 30 that two groups of repo trades will fall outside the definition of eligible secondary market transactions under its Treasury clearing rules.

The first group covers certain deals with non-U.S. counterparties, subject to limits and conditions. The second covers certain trades between a direct participant of a Treasury clearing agency and an affiliate, as long as that affiliate is not an investment company and otherwise qualifies as an affiliated counterparty.

How the rules got here

The agency adopted the clearing rules in December 2023 and later pushed back the original compliance dates to allow more time on operational and interpretive questions. In September 2025 it opened a single webpage for updates and staff guidance.

Commissioner Mark T. Uyeda, whom Chairman Paul S. Atkins designated to lead the transition work, said “Today’s targeted relief addresses practical concerns while preserving the important benefits of central clearing.” The SEC said the order follows public comment on requests made on behalf of market participants.

Why Treasury futures traders care

Repo is the funding market behind many Treasury positions, including the cash-and-futures basis trades that tie Treasury futures to the underlying bonds. Rules on which repo trades must clear feed into the cost and the plumbing of that funding.

Dealers and cross-border participants are the most directly affected. Staff in the Division of Trading and Markets remain the contact point for compliance questions during the implementation period.