SEC Commissioner Uyeda Assumes Lead in Treasury Settlement Initiatives
The Securities and Exchange Commission (SEC) is driving forward with the central clearing of U.S. Treasury securities, aiming to transform market operations and reduce counterparty risk. This move is expected to enhance efficiency in the U.S. Treasury market.
Key deadlines for the transition have been set, with the Fixed Income Clearing Corporation (FICC) required to implement revised policies by September 30, 2025. Direct participants must segregate proprietary transactions from customer ones by this date, and mandatory central clearing of eligible cash transactions will commence on December 31, 2026, followed by eligible repo transactions on June 30, 2027.
To help market participants navigate this transition, the SEC's Division of Trading and Markets has published a comprehensive FAQ guidance. This resource clarifies the types of trades that will be subject to central clearing, including repos and sales between clearing agency members, brokers, and dealers. The mandate covers nearly all cash and repo transactions involving direct clearing participants.
Recognising the operational and interpretive challenges that firms may face, the SEC extended the compliance deadlines by 12 months, effective February 25, 2025. This extension provides firms with more time to prepare for the transition.
Commissioner Mark T. Uyeda is playing a significant role in overseeing these efforts as part of his broader responsibilities at the SEC. He is known as a key figure involved in market structure and clearing regulatory developments. His role includes ensuring that the new rules are implemented effectively while supporting market resilience and risk mitigation.
Market infrastructure providers, such as ICE Clear Credit, are also ramping up testing and seeking regulatory approval to support these new SEC requirements. ICE has scheduled live client testing ahead of the December 2026 clearing start date.
In summary, the SEC's clearing mandate for U.S. Treasury securities has phased compliance dates: September 30, 2025; December 31, 2026; and June 30, 2027. FAQs clarify the trade types subject to central clearing, and a 12-month extension was granted in early 2025 to ease the transition. Commissioner Mark T. Uyeda is involved in the regulatory oversight and implementation process, and market infrastructure providers like ICE are developing and testing clearing platforms aligned with the SEC's timeline.
These efforts aim to reduce market risk and improve overall efficiency in the U.S. Treasury securities marketplace. Commissioner Uyeda also emphasises the importance of the U.S. Treasury market in global finance. He will coordinate the ongoing work being done across the SEC to prepare for the transition to central clearing of U.S. Treasury securities.
[1] SEC.gov, "Fact Sheet: Central Clearing of U.S. Treasury Securities," 2023. [2] CFTC.gov, "CFTC Staff Issues No-Action Letter to the Fixed Income Clearing Corporation," 2022. [3] FICC.com, "FICC Announces Revised Policies for Central Clearing of U.S. Treasury Securities," 2022. [4] ICE.com, "ICE Clear Credit to Support New SEC Rules for Central Clearing of U.S. Treasury Securities," 2023. [5] FINRA.org, "FINRA Issues Guidance on Central Clearing of U.S. Treasury Securities," 2023.
The SEC's central clearing mandate for U.S. Treasury securities affects various aspects of the industry, such as finance, business, and clearing. Commissioner Mark T. Uyeda is overseeing these efforts within the SEC, focusing on effective implementation, market resilience, and risk mitigation in this new regulatory environment. Market infrastructure providers, like ICE Clear Credit, are developing and testing clearing platforms in compliance with the SEC's regulations and timeline.
