Regulatory Alerts2022-09-14
Standards for Covered Clearing Agencies for U.S. Treasury Securities and Broker-Dealer Customer Protection Rule Application
The Securities and Exchange Commission proposes amendments to clearing agency standards requiring U.S. Treasury securities covered clearing agencies to establish policies ensuring direct participants submit all eligible secondary market transactions for clearance and settlement. The proposal also updates risk management requirements for margin calculation and segregation while amending the broker-dealer customer protection rule to allow treasury securities margin held at clearing agencies to count toward broker-dealer reserve formulas. These regulatory changes aim to enhance investor protection, mitigate systemic risk, and improve operational efficiency across the U.S. Treasury market.
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