The US Securities and Exchange Commission (SEC) is reconsidering its implementation of the sweeping central-clearing rule for US Treasuries, according to a report by Bloomberg. Agency staff are evaluating possible broadening of the inter-affiliate exemption, which could extend relief to cash transactions and certain affiliate trades.

Commissioner Mark Uyeda added at a Federal Reserve Bank of New York conference that the agency is considering how exemptions could address transactions for internal liquidity and collateral management. Originally adopted in December 2023, the Treasury clearing rule mandates eligible cash and repo trades in US Treasuries be centrally cleared by the end of 2026 and mid-2027 respectively.

The SEC’s re-examination comes as the agency works to avoid market disruption, and as participants flag the complexity in adapting to the agency's new rules.