SIFMA today issued the following statement from Kenneth E. Bentsen, Jr., president and CEO, on the Securities and Exchange Commission’s (SEC) extension of the compliance dates for Treasury clearing:
“SIFMA commends Acting Chairman Uyeda and the Commission for taking the step to extend the implementation date for mandated central clearing of Treasury securities and repurchase agreements. Given the importance of the Treasury market to the financial system and the economy, along with the expected significant issuance of Treasury securities in the coming years, it is essential that the implementation timeline for the clearing rules allows for a smooth transition so as not to disrupt this market. For the past year, we have been working with our members, both buy side and sell side, and other market participants to develop standardized documentation, policies and procedures to facilitate the transition to mandated central clearing. While we have seen continued uptick in cleared cash and repo Treasuries, market participants have become increasingly concerned that the original implementation dates were overly aggressive and would add unnecessary risk to the nation’s and world’s most important asset market. Further, as we have documented over the past year, there remains the need for critical regulatory guidance to facilitate the transition in total. While the action by the Commission is the most prudent course, no one should interpret this as the industry and the market stepping back from central clearing. The industry will continue to plow forward with our work to accomplish the mandate set out in the rule.”
