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Clearing Rules

All articles tagged with #clearing rules

finance2 years ago•4 min saved

SEC Implements New Clearing Rules, Overhauling US Treasury Market

The U.S. Securities and Exchange Commission (SEC) has adopted new rules aimed at reducing systemic risk in the $26 trillion U.S. Treasury market by requiring more trades to go through clearing houses. The reforms, which will be implemented in phases by June 2026, target hedge funds and proprietary trading firms that have become a larger part of the Treasury market but are relatively lightly regulated. The new rules broaden the scope of transactions that must be cleared and require clearing houses to ensure that their members clear cash Treasury trades. While advocates argue that clearing makes markets safer, critics say it adds costs that could reduce liquidity.

via Reuters|

#clearing-rules #finance #market-overhaul

finance2 years ago•1 min saved

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.

via Reuters|

#clearing-rules #derivatives-market #europe