Solutions to lead you on the path to central clearing
The United States Securities and Exchange Commission (SEC) adopted a final rule in December 2023 to enhance risk management practices for central counterparties (CCP) in the U.S. Treasury market and facilitate additional clearing of U.S. Treasury (UST) securities transactions.
The SEC central clearing rule is set to transform the U.S. Treasury market, requiring market participants to reorganize their trading and infrastructure. BNY can help clients navigate these changes with new ways to access the market, clear and finance their transactions, and manage their collateral and margin.
Clear and finance your cash trades with a leading global clearing solution.
Conduct cleared repo trades by tapping into the single-largest triparty repo platform1 for U.S. government securities.
12025 Finadium triparty market survey.
Source liquidity or invest cash with one of the largest providers of centrally cleared repo financing.2
2S&P Global Market Intelligence as of 3Q 2024
Maintain and grow counterparty relationships by clearing repo trades through a single "Done-Away" clearing agent.
BNY’s sponsored cleared repo service enables clients to face Fixed Income Clearing Corporation (FICC) as a repo counterparty, without assuming the financial obligations of direct membership. BNY is a market leader in facilitating CCP access, providing the risk mitigation and capacity benefits of repo clearing to qualifying cash investors and borrowers through a mechanism called “sponsored membership.”
For market participants who want to centrally clear their transactions directly, our U.S. Government securities clearing platform provides direct access to the Federal Reserve to clear and settle primary and secondary trading activity for U.S. government securities. While BNY provides settlement services to its clients for cleared and uncleared activity, they will need to ensure that their eligible U.S. Treasury transactions are submitted for central clearing to a Covered Clearing Agency.
Our Outsourced Clearing solution helps clients power their business by offering scale across multiple markets, a flexible cost structure and staying ahead of new regulations. We provide access to the FICC today through BNY Pershing and for U.S. Treasury Cash and Agency Securities through the FICC’s Correspondent Clearing Model, that is currently evolving to become the Agent Clearing Service (ACS).
Through the anticipated FICC-Sponsored “Done Away” model, FICC Netting Members are anticipated to be able to centrally clear U.S. Treasury repo transactions without sponsoring their counterparties and utilizing BNY as acting sponsor and clearing agent. Currently clearing a trade is “done with” the dealer that executes the trade. With BNY’s “Done Away” clearing model, clearing a trade is “done away” from the dealer that executed the trade, keeping the clearing and execution of the trade separate.
As the world’s largest collateral services provider,3 BNY’s Global Collateral platform allows clients to efficiently centralize how collateral is managed, opening up a world of possibilities for utilizing your assets to meet investment objectives. BNY triparty repo is the single-largest venue for financing Treasury securities in the world.4
3 BNY 2024 Annual Report
4 2025 Finadium triparty market survey.
Scalable solutions that streamline onboarding, documentation, and operational change associated with mandatory central clearing of UST.
Proactively manage liquidity with real-time visibility, automated collateral allocation, and flexible intraday financing.
Enhance market resiliency through netting, margining, and tested clearing safeguards across the trade lifecycle designed to reduce counterparty risk.
*As of Q4 2025
The following FAQs reflect BNY's understanding of the current rule. Please consult your internal legal and compliance teams, along with FICC, for further clarity and final determination.
Direct participants are required to clear eligible cash transactions by December 31, 2026, and clear eligible repo and reverse repo transactions by June 30, 2027.
Direct members of an SEC-registered clearing agency that clears U.S. Treasury security trades (a “Treasury CCA”) must submit eligible secondary market U.S. Treasury trades for clearing. Eligible transactions include:
No, the SEC clarified that mixed CUSIP triparty repo, in which U.S. Treasury securities are allocated as collateral based on a “collateral eligibility schedule” is an “eligible secondary market transaction” when the parties have selected a matching CUSIP (or similar collateral matching mechanism) at trade execution corresponding to securities other than U.S. Treasury securities.
FICC does not currently clear this type of trade today. FICC may choose to clear this trade in the future.
FICC provides a variety of access models that market participants can choose from. For more information, please consult FICC’s website.
Current fees apply.
FICC may require testing prior to onboarding. BNY will support our clients who are required to test.
Current messaging and reporting protocols still apply.
Sponsored GC is an FICC product that allows Sponsoring members to submit triparty repos executed on a general collateral basis to central clearing. Specific to Sponsored GC, FICC has created nine products (CUSIPs) with standard eligibility requirements which BNY has translated into a Schedule I (schedule of eligible collateral). Margins will need to be agreed between the sponsor and sponsored member.
Trade instructions will need to contain one of the nine CUSIPs for matching purposes.
Based on FICC’s requirement, transactions are required to settle (collateralized / funded) by 7:00 PM ET.
FICC is currently the only Treasury CCA for U.S. Treasury securities, but other Treasury CCA providers have expressed interest in entering the space, and they may use BNY’s products and services to support their efforts.
Please contact your client representative.
We encourage you to visit FICC’s website for further information on how FICC will support the SEC’s U.S. Treasury central clearing mandate.
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Markets products are offered through BNY or Capital Markets, LLC in the U.S. and select countries in NA, EMEA and APAC where permitted by local law. Not all products and services are offered in all countries. Please confirm with a BNY representative.
