Federal Register #2026-07224

SEC Notice on Reserve Computations for U.S. Treasury Securities at CME Securities Clearing

This notice from the Securities and Exchange Commission (SEC) provides regulatory guidance for broker-dealers regarding reserve computations for customer protection involving U.S. Treasury securities. - Government Buyer: - Securities and Exchange Commission (SEC) - Relevant Entities: - CME Securities Clearing Inc. (CMESC) (clearing organization) - Key Details: - Clarifies that broker-dealers may include a debit in their customer protection rule reserve computations when depositing cash, U.S. Treasury securities, and/or qualified customer securities to meet margin requirements at CMESC for customer positions in U.S. Treasury securities - Follows SEC approval of CMESC's rules and practices that satisfy customer protection objectives under Rule 15c3-3a, Note H - Outlines regulatory conditions for including such debits in reserve computations - Notable Requirements: - No procurement of products or services is involved - Notice addresses compliance and risk management practices for broker-dealers handling U.S. Treasury securities - No purchase quantities, part numbers, or procurement actions are specified

Description

The Securities and Exchange Commission (SEC) published a notice informing broker-dealers that they may include a debit in the customer protection rule reserve computations when depositing cash, U.S. Treasury securities, and/or qualified customer securities to meet margin requirements of CME Securities Clearing Inc. (CMESC) arising from customer positions in U.S. Treasury securities. This follows the Commission's approval of CMESC's rules and practices that meet the customer protection objectives under Rule 15c3-3a, Note H. The notice clarifies conditions under which broker-dealers can include such debits in reserve computations, enhancing risk management and customer protection in the U.S. Treasury securities market.

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