SEC Grants Targeted Relief for Certain Treasury Repo Clearing Transactions

The Securities and Exchange Commission (SEC) has issued exemptive relief for certain inter-affiliate and non-U.S. repurchase agreement transactions as broker-dealers and other market participants prepare for the central clearing of U.S. Treasury securities. The relief excludes specified transactions from the definition of eligible secondary market transactions under the Treasury clearing framework. The exemption covers certain repo transactions involving non-U.S. counterparties, subject to specified limits and conditions. It also applies to certain repo transactions between a direct participant of a U.S. Treasury securities clearing agency and an affiliated entity that is not an investment company under Section 3 of the Investment Company Act of 1940, provided the affiliate otherwise meets the definition of an affiliated counterparty under Rule 17ad-22(a). The SEC adopted its Treasury clearing rules in December 2023, but later extended the original compliance dates to allow additional time to address compliance, operational and interpretive questions. The latest relief follows public engagement and requests for exemptions concerning how the rules would apply to inter-affiliate and cross-border repo transactions. SEC Commissioner Mark T. Uyeda, whom Chairman Paul S. Atkins designated to lead the agency’s initiative overseeing the transition to central clearing of U.S. Treasury transactions, said the targeted relief was intended to address practical implementation concerns while preserving the benefits of central clearing. In September 2025, the SEC also launched a centralized webpage containing implementation updates, frequently asked questions, Commission and staff statements, and related resources. Market participants preparing for compliance can contact the SEC’s Division of Trading and Markets by email at [email protected] or by telephone at 202-551-5777.