SEC Eases Margin Rules for Treasuries: Finance Nerds Rejoice Quietly
Published Date: 4/20/2026
Notice
Summary
The SEC is giving special permission to certain broker-dealers who also handle futures to combine (or cross-margin) U.S. Treasury securities and related futures for margin calculations. This means these firms can use customer assets more efficiently, potentially saving money and reducing risks. The new rules kick in soon and apply only to firms that clear both securities and futures through approved agencies.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 1 costs, 1 mixed.
Customer Assets Held in Futures Accounts Lose SIPA Protections
If you join a Customer Cross‑Margin Program with an Eligible BD‑FCM, your eligible Treasury securities and the margin tied to them can be held in a CFTC-defined futures account from novation through settlement. While those assets are in the futures account, the broker-dealer segregation requirements of section 15(c)(3) of the Exchange Act and customer protections under SIPA will not apply; instead, protections under Subchapter IV of Chapter 7 of the U.S. Bankruptcy Code and CFTC rules will apply.
Customers Allowed to Cross‑Margin Treasuries and Futures
The SEC is allowing certain broker-dealers that are also futures commission merchants ("Eligible BD-FCMs") to cross‑margin cleared U.S. Treasury securities and related futures for customers. This change, effective April 15, 2026, permits risk offsets to be recognized from novation through settlement and can reduce initial margin requirements and margin costs for customers who participate.
Written Consent and Subordination Required
Before you can participate in a Customer Cross‑Margin Program, both you and the Eligible BD‑FCM must agree in writing to participate, and you must sign a written non‑conforming subordination agreement acknowledging that your Eligible Securities Positions and Associated Margin will be subordinated and subject to the commodity broker liquidation rules. The broker must provide a disclosure document beforehand explaining these effects.
Gross, Customer‑By‑Customer Margin Calculations Required
Clearing agencies and DCOs implementing a Customer Cross‑Margin Program must calculate initial margin for Eligible Customer Positions on a gross, customer‑by‑customer basis using the same margin reduction methodology. Eligible BD‑FCMs must also collect at least the aggregate initial margin required by each clearing agency and DCO for each cross‑margining customer.
Cross‑Margining Availability Broadened to Any Eligible BD‑FCM
The exemptive order, issued April 15, 2026, is written broadly so that any broker‑dealer that is also an FCM and meets the order's conditions (an Eligible BD‑FCM) may participate in customer cross‑margining without a separate exemptive application. This can streamline implementation across multiple clearing agencies and DCOs.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026, because changes could affect how audits are done and funded.
2026-09742 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule To Adopt a New Fee Code for Market-Maker Complex Orders Executed on the Complex Order Book That Add Liquidity in Penny Program Securities and To Amend Its Orders Submitted With a Designated Give Up Program
Starting May 1, 2026, Cboe BZX Exchange is updating its fees to add a new code for Market-Maker Complex orders that add liquidity in penny stocks. They’re also tweaking rules for orders using a special Give Up program. These changes mainly affect market makers and traders using complex orders, aiming to make fees clearer and trading smoother.
2026-09745 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees for Industry Members Related to Reasonably Budgeted CAT Costs of the National Market System Plan Governing the Consolidated Audit Trail for May 1, 2026 Through December 31, 2026
Starting May 1, 2026, MEMX is charging industry members a tiny fee of $0.000001 per share to help cover the costs of the Consolidated Audit Trail (CAT) system through the end of the year. This fee supports tracking stock trades better and will show up on invoices starting June 2026. If you’re a broker or part of the trading world, get ready to chip in for smoother market oversight!
2026-09728 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Concerning the Consolidated Audit Trail
MEMX is setting new fees for industry members to cover leftover historical costs from the National Market System’s Consolidated Audit Trail, which tracks stock trades. These fees, called Historical CAT Assessment 1A, will collect about $39 million that wasn’t billed before. The change is effective immediately, so affected members should get ready to pay soon!
2026-09736 — Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Fees Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail
Nasdaq PHLX is setting new fees for industry members to cover leftover historical costs from the National Market System Plan for the Consolidated Audit Trail. These fees, called Historical CAT Assessment 1A, will collect about $39 million for costs before 2022 that weren’t billed before. The fees start right away and will be charged per share traded, helping keep the audit trail running smoothly.
2026-09734 — Self-Regulatory Organizations; Nasdaq Texas, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Fees Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail
Nasdaq Texas is setting new fees to cover leftover historical costs from the National Market System Plan for the Consolidated Audit Trail. Industry members who trade on the exchange will pay these fees starting soon to help cover about $39 million in past expenses not yet billed. This update keeps the system fair and funded without surprises!
Previous / Next Documents
Previous: 2026-07635 — Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Partial Amendment No. 2 and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Partial Amendment Nos. 1 and 2, To Amend and Restate the Second Amended and Restated Cross-Margining Agreement Between FICC and CME and Amend Related GSD Rules
The Fixed Income Clearing Corporation (FICC) and Chicago Mercantile Exchange (CME) teamed up to update their cross-margining agreement, making it easier for certain broker-dealers to manage their customer positions across both platforms. These changes speed up processes and improve rules, helping eligible members save money and reduce risks. The SEC gave this update a fast-track green light, so it’s rolling out soon!
Next: 2026-07639 — Combined Notice of Filings
The Federal Energy Regulatory Commission got new filings about natural gas pipeline rates from Kinder Morgan and Millennium Pipeline. These filings could change how much some companies pay or get paid, with key deadlines for public comments by April 27, 2026. If you want to speak up or get involved, now’s the time to act before the deadline!