The Securities and Exchange Commission’s Division of Trading and Markets has released a series of Frequently Asked Questions (FAQs) today, addressing inquiries from broker-dealers concerning amendments to the customer protection rule pertinent to the clearing of U.S. Treasury securities.
Jamie Selway, Director of the Division of Trading and Markets, affirmed the staff's dedication to supporting broker-dealers and other market participants in their transition towards central clearing within the U.S. Treasury market. He highlighted the FAQs as one of many initiatives by Commission staff to offer clarity as the crucial compliance dates—December 31, 2026, for cash transactions and June 30, 2027, for repo agreements—draw nearer.
Concurrently, Chairman Paul S. Atkins announced the appointment of Commissioner Mark T. Uyeda to spearhead the agency’s ongoing endeavors regarding the central clearing of U.S. Treasuries. Emphasizing the paramount importance of a seamless transition to central clearing for U.S. Treasury securities, Chairman Atkins stated, “It is critical that the transition to clearing U.S. Treasury securities goes smoothly.” He expressed pleasure that Commissioner Uyeda has agreed to coordinate the extensive work being done across the SEC to prepare. Chairman Atkins acknowledged industry concerns about areas requiring additional guidance, noting that the staff's recent clarifications mark significant progress. He concluded, “There’s work still to be done, both at the agency and within industry, and Commissioner Uyeda and I look forward to engaging with stakeholders to make sure we get this right.”
Commissioner Uyeda, for his part, underscored the fundamental role of the U.S. Treasury market in global finance and its critical importance domestically and internationally. He affirmed the SEC's commitment to collaborate with market participants, central banks, and other regulators to ensure that implemented policies effectively enhance the Treasury market’s operational efficiency.