2026-12613NoticeWallet

SEC Grants Narrow Relief to Treasury Clearing Agencies

Published Date: 6/23/2026

Notice

Summary

The SEC is giving special permission to some U.S. Treasury securities clearing agencies to exclude certain trades between related parties from strict rules about reporting and clearing. This change affects big financial players who trade these securities and helps them avoid extra paperwork for these specific deals. The new rules kick in soon and aim to keep the market smooth without adding extra costs or risks.

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Exemption for Private Fund–Captive Repo Trades

The SEC exempts repurchase (repo) and reverse repo transactions between a Private Fund and its Captive Clearing Subsidiary (a direct participant) from the Rule 17ad-22(a) definition of an “eligible secondary market transaction,” if three conditions are met: (1) the Captive Clearing Sub is directly or indirectly wholly owned by one or more Private Funds; (2) if owned by more than one Private Fund, those funds are managed by a common investment adviser or affiliated group; and (3) the Private Funds and Captive Clearing Sub satisfy the majority ownership, accounting consolidation, and outward-facing conditions (to the extent the outward-facing condition applies). The Order is dated June 18, 2026.

Keeps Private Funds’ Direct Clearing Access Option

The exemption lets Private Funds access central clearing through a Captive Clearing Sub instead of relying on an unaffiliated third-party direct participant. The Commission states this could permit more transactions to be centrally cleared, potentially increasing overall clearing capacity and promoting prompt and accurate clearance and settlement.

Private Funds Continue Funding Their Own Margin

The Commission notes that using Captive Clearing Subs generally means Private Funds would use their own capital to fund margin requirements to the U.S. Treasury securities clearing agency, rather than relying on unaffiliated third-party direct participants. The Order says this could free up capital for unaffiliated direct participants to sponsor other, smaller market participants into central clearing.

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Key Dates

Effective Date
Published Date
6/18/2026
6/23/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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