SEC Grants Exemptions from Treasury Clearing Rules for Certain Inter‑Affiliate and Non‑U.S. Repo Transactions

The Securities and Exchange Commission extended compliance deadlines and issued exemptive relief for specific repo transactions that do not meet the Treasury clearing rules. The relief excludes from the definition of eligible secondary‑market Treasury transactions: (1) repo transactions involving non‑U.S. counterparties, subject to specified limits and conditions; and (2) repo transactions between a direct participant of a U.S. Treasury securities clearing agency and any affiliated entity that is not an investment company under the Investment Company Act of 1940, provided the affiliate otherwise qualifies as an affiliated counterparty under Rule 17ad‑22(a). The decision follows the SEC’s December 2023 adoption of the Treasury clearing rules and a public‑comment period that highlighted implementation challenges. Market participants may contact SEC staff at [email protected] or 202‑551‑5777 for questions. The relief aims to give participants additional time to address compliance, operational, and interpretive issues while maintaining the benefits of central clearing.