SIFMA, BNY, Broadridge and The Depository Trust & Clearing Corporation (DTCC), in collaboration with The ValueExchange, today released key findings from their “U.S. Treasury Central Clearing Pulse Survey”, which draws upon key insights and feedback from 330 global market participants. The survey, conducted by The ValueExchange, was designed to provide an update on where the industry stands with a little over twelve months to meet the cash implementation deadline. Survey respondents include buy-side and sell-side firms, custodians and CCAs in the U.S., Europe, and Asia.
The main findings are net positive from a U.S. domestic readiness perspective:
- 71% of U.S. respondents state they are “very familiar” with the changes, and a further 25% state they are “somewhat familiar.”
- Additional findings from the U.S. perspective reveal further clarity is needed relating to inter-affiliate flows and with respect to the final rules for the new CCAs.
- The survey also highlights that if these and other issues aren’t resolved by early 2026, firms' ability to build and be ready on time may be impacted.
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- While awareness is high in North America, familiarity elsewhere remains limited. Only 27% of European respondents describe themselves as “very familiar” with the rule changes and 18% state they are “not familiar at all.” APAC respondents state they are “somewhat familiar,” highlighting the need for further education.
- Despite the forthcoming deadline, there is limited active project work. Buy-side firms remain behind the curve, with 77% of organizations still in the research stage. Europe and Asia firms trail the U.S. in their preparations for central clearing, with 82% of respondents from Europe and 80% of respondents from Asia reporting they have not progressed beyond scoping.
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- 54% of firms are very confident they will be ready by the cash deadline, while 40% of firms are very confident they will be ready by the repo deadline. Also, 45% feel that they need clear rules and more detail on models by the end of 2025 to stay on track.
- Regulatory direction is identified as the single most important dependency in project planning. As the report highlights, “bottlenecks will not shift without regulatory clarity.”
- 38% of firms expect U.S. Treasury Clearing to increase margins by over 25%, while 55% of respondents anticipate an increase in regulatory capital costs.
- Two-thirds of firms indicate that they will decide whether to pass these additional costs to clients through bilateral negotiation. Key operational impacts identified by respondents included contract repapering (cited by 55% of firms) and back-office changes (cited by 66% of firms).
- For buy-side firms, this impact is concentrated at the repo desk, whereas for sell-side firms, it affects the entire organization including systems, IT, settlement and compliance.
- 29% of buy-side firms do not expect to complete preparations before the end of 2027.
- Most firms expect that operational and technology workloads will be the last to complete, indicating a heavy lift is still ahead across systems and integration layers.
Clarity remains a key barrier to readiness:
The findings also highlight the need for further regulatory clarity and system changes to support mandatory clearing:“Firms are making meaningful progress, but as the survey highlights, success requires diving into the details to get this right,” said Nate Wuerffel, Global Head of Market Structure and Product Leader for the Global Collateral Platform at BNY. “The urgency is clear – not just to meet compliance deadlines, but for participants to strategically position themselves for success in a rapidly evolving market structure. Those who engage early can gain a strong competitive edge and emerge as leaders, turning a regulatory mandate into opportunities for growth.”
Costs mount as clearing expands:
Respondents report that U.S. Treasury central clearing is expected to have a negative impact on operating and Treasury costs:"FICC remains focused on providing optimal clearing services that meet the needs of all firms that are impacted by the expanded U.S. Treasury clearing requirements,” said Laura Klimpel, Managing Director, Head of DTCC’s Fixed Income and Financing Solutions. “These findings illustrate the need for firms to advance preparations as soon as possible, and we stand ready to lead the industry with education, access models and solutions that enable compliance."
Deadlines approach as firms race to complete:
The implementation timeline remains a central challenge:"Driving transformation across long established clearing workflows requires a disciplined and coordinated effort across firms,” said Quentin Limouzi, Global Head of Post Trade, Broadridge. “With the deadlines fast approaching, firms have little time to move from planning to execution. We’re working closely with clients to help them meet these milestones— accelerating automation, innovating operational and technology workflows, and ensuring seamless integration with their clearing venues.”
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“We are encouraged by the findings of this survey as it relates to U.S. firm readiness,” said Steve Byron, Managing Director and Head of Technology, Operations, and Business Continuity at SIFMA. “The move to centralized Treasury clearing is a complex and significant lift for our member firms. Given the key role that U.S. Treasuries play within the global markets, ensuring global awareness of the implementation process is critically important. SIFMA continues to build out resources for our members, such as standardized documentation and implementation guides, which are available to assist all market participants. As we approach the one-year countdown to cash implementation, we look forward to continuing to assist the industry as we all work toward a successful transition in this important market.”
U.S. Treasury Clearing is still a North American topic, with lower levels of understanding overseas, according to survey responses:
