SEC Appoints Commissioner Uyeda to Head Treasuries Settlement Initiatives
In a significant move, the Securities and Exchange Commission (SEC) has announced that Commissioner Mark T. Uyeda will lead the agency's efforts related to central clearing of U.S. Treasuries. The U.S. Treasury market, as Commissioner Uyeda emphasised, is of central importance to the country and the world.
To support broker-dealers in their compliance with the customer protection rule amendments tied to Treasury clearing, the SEC has issued FAQs. These FAQs address operational and compliance concerns, providing detailed guidance on reserve calculations, margin, collateral use, and related matters.
In a bid to ensure a smooth transition, the SEC has granted a one-year extension to the clearing mandate deadlines. Key implementation milestones now continue into 2026-2027. Central clearing now mandates virtually all cash and repo Treasury transactions to be centrally cleared, with phased deadlines for implementing revised policies, separating proprietary and customer transactions, and submitting transactions for clearing.
Commissioner Uyeda, playing an active leadership role in the SEC’s ongoing efforts, is involved in steering the rulemaking process and urging market participants to adapt efficiently to the new regulatory framework. His role includes engagement with stakeholders to facilitate implementation and address challenges brought by the clearing mandate.
The Securities and Exchange Commission's Division of Trading and Markets, led by Director Jamie Selway, is committed to assisting broker-dealers and other market participants in the transition to central clearing in the U.S. Treasury market. The staff is making progress on providing clarification for the transition, with Commissioner Uyeda and Chairman Atkins looking forward to engaging with stakeholders to ensure a successful transition.
Despite the progress made, there is still work to be done, both at the agency and within the industry, for the successful transition to central clearing of U.S. Treasury securities. The industry has raised several areas where further guidance would be beneficial, and the SEC remains committed to engaging with market participants, central banks, and fellow regulators to address these concerns.
The Securities and Exchange Commission (SEC) has released FAQs to assist broker-dealers in adhering to the customer protection rule amendments associated with Treasury clearing, providing guidance on topics such as reserve calculations, margin, collateral use, and related matters.
Commissioner Uyeda, leading the SEC's efforts, is notably engaged in shaping the rulemaking process and appealing to market participants to adapt efficiently to the new regulatory framework in the finance industry, with a focus on the U.S. Treasury business.
