Federal Register #2026-22740

SEC conditional relief for margin treatment in centrally cleared U.S. Treasury transactions

The Securities and Exchange Commission (SEC) issued a conditional regulatory order concerning margin treatment for centrally cleared U.S. Treasury transactions. - Issuing agency: Securities and Exchange Commission (SEC); this is a regulatory action, not a procurement. - Relief: Qualifying broker-dealers may include a debit in customer and proprietary securities account reserve computations for required margin on certain centrally cleared U.S. Treasury transactions. - Applies when a qualified clearing agency calculates customer margin on a net, omnibus, or gross basis and the broker-dealer delivers collateral on a net, omnibus basis. - Key conditions: Requirements cover eligible collateral, limits on the reserve debit, records of customer margin collected and delivered, clearing-agency rulebook amendments, and broker-dealer policies and procedures. Other applicable requirements remain in effect. - Organizations named: The order discusses an application by the Securities Industry and Financial Markets Association (SIFMA) and identifies Fixed Income Clearing Corporation (FICC), CME Securities Clearing Inc., and ICE Clear Credit LLC as qualified clearing agencies. - Products, services, quantities, and part numbers: None; no goods or services are being requested.

Description

The Securities and Exchange Commission grants conditional exemptive relief to broker-dealers from specified provisions of Exchange Act Section 15(c)(3) and Rule 15c3-3a, Note H. The relief permits broker-dealers to include a debit in customer and PAB reserve computations for required margin related to certain centrally cleared U.S. Treasury transactions when a qualified clearing agency calculates customer margin on a net, omnibus, or gross basis and the broker-dealer delivers collateral on a net, omnibus basis. The order sets conditions covering eligible collateral, reserve debit calculations, recordkeeping, clearing agency rule amendments, and broker-dealer policies and procedures.

View original listing