Clearing House Expands Treasury Collateral Options
Published Date: 6/9/2026
Notice
Summary
LCH SA, a big player in clearing credit swaps, is now accepting more types of U.S. Treasury securities as collateral to keep things safer and smoother. This change helps protect against risks if a member can’t pay up and starts June 9, 2026. Clearing members who provide collateral will have more options, making the whole system stronger and more flexible.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 1 costs, 3 mixed.
More U.S. Treasuries Accepted as Collateral
LCH SA will accept U.S. Treasury Notes, Bonds, Floating Rate Notes (FRNs), and Treasury Inflation-Protected Securities (TIPS) as eligible margin collateral in addition to the T-bills it already accepts. Those securities must meet the same eligibility rules (minimum issuance size $500,000,000 per issuance), have remaining maturities between 3 business days and 30 years, and will be subject to haircuts (Notes/Bonds/FRNs use existing T-bill haircuts; TIPS have separate haircuts by maturity bucket).
TIPS $2 Billion Concentration Limit
LCH SA establishes an overall concentration limit of $2,000,000,000 for Treasury Inflation-Protected Securities (TIPS) at both the individual clearing member and clearing member group levels. This $2 billion cap will be reflected in LCH SA's Acceptable Securities List and made available to members via LCH SA's Knowledge Center.
Per-ISIN Concentration Limits Tightened
LCH SA is lowering the per-ISIN concentration limit for U.S. government bond issuances from 25% to 20%. It also adjusts other per-ISIN limits: Spain increases from 10% to 20%, International Bank for Reconstruction and Development bonds increase from 10% to 15%, and France, UK, and Belgium decrease from 25% to 20%. These per-ISIN limits apply to eligible issuances used as non-cash collateral.
New Relative Limit on U.S. Treasury Usage
LCH SA adds a new rule (CRF section 5.8.8) allowing it to limit the share of a clearing member’s collateral requirement that can be satisfied using U.S. Treasury securities. LCH SA sets the initial relative limit at 100% (non-binding), but may lower it if liquidity or other risk considerations require; the rule gives LCH SA discretion (for example it could limit a member to using only 50% of its requirement with Treasuries, meaning $5 million of Treasuries for a $10 million requirement).
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