SEC Issues Exemptive Relief from Treasury Clearing Requirements for Certain Inter-Affiliate and Non-U.S. Repo Transactions

📅 30 October 2026 • U.S. Securities and Exchange Commission • SEC Issues Exemptive Relief from Treasury Clearing Requirements for Certain Inter-Affiliate and Non-U.S. Repo Transactions

Targeted relief issued. On 30 October 2026 the U.S. Securities and Exchange Commission issued exemptive relief connected with its U.S. Treasury clearing rules in exemptive order Release No. 34-106789. The relief excludes from the definition of eligible secondary market transactions certain repo transactions, removing them from the scope that direct participants must submit for central clearing, subject to the limits and conditions stated in the order.

Two exclusions from mandatory clearing. First, certain repo transactions involving non-U.S. counterparties, allowed within specified limits and conditions. Second, 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 as defined in Section 3 of the Investment Company Act of 1940, provided the affiliate otherwise meets the definition of an affiliated counterparty in Rule 17ad-22(a).

Timeline of the rules. The Treasury clearing rules were adopted in December 2023. To allow further engagement on compliance, operational and interpretive questions and to support orderly implementation, the Commission extended the original compliance dates and confirmed its readiness to engage with market participants. In September 2025 the SEC launched a one-stop webpage consolidating implementation updates, FAQs, Commission and staff statements and other resources.

How the relief emerged. The SEC said the action follows extensive public engagement on the scope of the rules for these transaction types, including requests for relief from market participants published for comment. Commissioner Mark T. Uyeda, designated by Chairman Paul S. Atkins to lead the initiative overseeing the transition to central clearing of U.S. Treasury securities, said the relief addresses practical concerns while preserving the important benefits of central clearing.

Questions during implementation. Market participants preparing for compliance can contact SEC staff in the Division of Trading and Markets directly by email at tradingandmarkets@sec.gov or by phone at 202-551-5777. The relief is conditioned on the stated limits and definitions, so firms should verify eligibility transaction by transaction before adjusting clearing workflows.

IMPACT
• Direct participants of U.S. Treasury clearing agencies with non-U.S. counterparties or inter-affiliate repo.
• Global banking groups moving repo between affiliates, which may fall outside mandatory clearing.
• Compliance and operations teams mapping flows and verifying limits, conditions and affiliate status.
• Clearing agencies applying the exclusions in trade submission policies.
What changes: certain non-U.S. and inter-affiliate repo no longer requires central clearing submission if conditions are met. Risks: eligibility depends on definitions and limits.

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SEC Issues Exemptive Relief from Treasury Clearing Requirements for Certain Inter-Affiliate and Non-U.S. Repo Transactions

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