The Securities and Exchange Commission (SEC) has announced an extension of compliance deadlines for key clearing regulations under the Securities Exchange Act, allowing market participants additional time to implement operational and risk management changes.
The compliance dates for Rule 17ad-22(e)(18)(iv)(A) and (B) have been extended by one year, moving the deadline for eligible cash market transactions to December 31, 2026, and for eligible repo market transactions to June 30, 2027. The rule mandates that clearing agencies providing central counterparty services for U.S. Treasury securities ensure that direct participants submit all eligible secondary market transactions for clearance and settlement. It also requires clearing agencies to monitor compliance and address any failures to submit transactions.
Additionally, the SEC has granted a temporary exemption for Rule 17ad-22(e)(6)(i), postponing enforcement from March 31, 2025, to September 30, 2025. This rule requires covered clearing agencies to calculate and hold margin amounts for direct participants separately from those of indirect participants relying on their services.
SEC Acting Chairman Mark T. Uyeda emphasized the importance of ensuring smooth implementation, stating, “The U.S. Treasury market is a critical piece of the global financial system. New rules must be implemented properly, and any operational issues must be addressed. This one-year extension provides additional time to validate operational changes and ensure effective risk management.”
The SEC aims to facilitate an orderly transition, allowing market participants to engage further on compliance and operational concerns. The temporary exemption ensures that indirect participants unprepared for compliance will not face immediate enforcement, while covered clearing agencies can still enforce policies for those ready to comply.
To find out more details please visit : https://www.sec.gov/