Federal Register #S7-2026-26

SEC Notice: SIFMA Application for Exemption to Net Omnibus Margining for U.S. Treasury Securities

This notice from the U.S. Securities and Exchange Commission (SEC) addresses an application for regulatory exemption submitted by the Securities Industry and Financial Markets Association (SIFMA). - Government Buyer: - U.S. Securities and Exchange Commission (SEC) - Division of Trading and Markets, Office of Broker-Dealer Finances - Applicant: - Securities Industry and Financial Markets Association (SIFMA) - Requested Action: - Exemption from certain conditions of Note H to Exchange Act Rule 15c3-3a - Would allow broker-dealers to compute customer margin for U.S. Treasury securities transactions on a net, omnibus basis (rather than gross, customer-by-customer) - Products/Services: - No physical products or OEMs are involved - Service: Exemptive relief application for broker-dealer customer protection rule - Unique/Notable Requirements: - Focused on regulatory relief to reduce operational complexity and capital inefficiencies for broker-dealers - Applies specifically to U.S. Treasury securities transactions cleared through qualified clearing agencies - Intended to benefit both large and smaller market participants - No specific contract value, quantities, or part numbers are associated with this notice - The SEC is soliciting public comments on the exemption application

Description

The Securities Industry and Financial Markets Association (SIFMA) filed an application with the Securities and Exchange Commission seeking an exemption under Section 36 of the Securities Exchange Act of 1934. The exemption would allow broker-dealers to include a debit in their reserve computations for customer margin related to U.S. Treasury securities transactions cleared, settled, and novated by a qualified clearing agency on a net omnibus basis rather than on a gross customer-by-customer basis. SIFMA argues that the current gross margining requirement imposes significant operational and capital inefficiencies and is not aligned with existing omnibus-based operational models. The Commission is providing an opportunity for public comment on this application.

View original listing