New DTCC statement highlights plans to comply with the SEC’s new Treasury rules

The Depository Trust and Clearing Corporation (DTCC) recently published a statement regarding the US SEC’s new Treasury regulations. According to the company, it has every intention to achieve full compliance with the amended rules.

DTCC confirms its intention to comply with the new regulations

In its statement, DTCC acknowledged that the SEC recently issued rule amendments around its 2022 expanded US treasury clearing proposal. The changes have brought additional regulatory clarty regarding the scope of the clearing requirements and implementation timelines.

The firm also noted that the final rules require a significantly larger portion of the US Treasury cash and repo markets — “specifically certain eligible secondary market transactions – to be centrally cleared by December 31, 2025 for cash transactions and June 30, 2026 for repo transactions.”

However, the company stressed that it is taking the necessary measures to align with the amendments. The organization plans to facilitate discussions, as well as offer guidance, and even disseminate important information for all market participants who need help navigating the changes.

“DTCC remains committed to supporting the industry and providing solutions that enable compliance with the expanded treasury clearing rule. We are prepared for this significant undertaking and will continue to evolve our access models and enhance capital efficiency whenever possible to effectively support our clients,” the announcement stressed.

DTCC also noted that the regulator requires a substantial amount of secondary market transactions to be centrally cleared by specified deadlines.

The SEC expects compliance over the next two-and-a-half-year period

The SEC published the new rules two days ago, on December 13. The rules request for clearinghouses to expand the scope of cleared transactions, while emphasizing the necessity for members to clear all repo and reverse repo transactions. The regulator claims that the mandate’s goal is to address the rising number of transactions, and in doing so, reduce risks while enhancing the market resilience.

The rules are to be implemented in phases over the next two and a half years. Doing so will require extensive coordination and cooperation from entities such as the Federal Reserve, the US Department of the Treasury, as well as the Commodity Futures Trading Commission (CFTC).

The US securities watchdog also set strict timelines for compliance, with the first big deadline being December 31, 2025. By this point, all cash transactions, as well as particularly eligible secondary market transactions, need to undergo central clearing.

After that, the SEC’s deadline for repo transactions is scheduled for half a year later — June 30, 2026. The regulator insists that the rules will enhance efficiency, resilience, and competition, and that they come as a significant milestone in the capital markets’ evolution.

Implementing them will also increase customer protection and market competition, according to the SEC, simply by altering margin posting protocols.