Regulatory Alerts2024-01-16 | 2023-27860Added
Standards for Covered Clearing Agencies for U.S. Treasury Securities and Application of the Broker-Dealer Customer Protection Rule With Respect to U.S. Treasury Securities
The Securities and Exchange Commission adopted final rules requiring covered clearing agencies for U.S. Treasury securities to mandate that direct participants submit all eligible secondary market transactions for central clearance and settlement. The Commission also amended risk management standards to require separate margin calculations for indirect participants and updated the broker-dealer customer protection rule to allow margin held at these clearing agencies to be counted as a debit in reserve formulas. These measures aim to reduce systemic risk, protect investors, and increase operational efficiency in the U.S. Treasury market.
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