Industry Body Urges Europe to Prepare for U.S. Treasury Clearing Rules and $1 Trillion ETF Risk

Europe must prepare for the implementation of U.S. plans to mandate the clearing of U.S. Treasuries transactions, according to the International Swaps and Derivatives Association (ISDA). The rules, yet to be finalized by the U.S. Securities and Exchange Commission, aim to enhance stability and resilience in the $25 trillion Treasuries market. The changes will have global implications, affecting dollar funding worldwide. ISDA emphasizes the need for careful consideration of the clearing process and ensuring that certain market participants do not lose access to Treasuries due to the new regulations. The implementation timetable should be designed to address the challenges faced by financial markets in the United States, which are already dealing with compliance pressures from other pending regulatory changes.