SEC Allows Broker-Dealers to Debit Treasury Margin in Reserve Calculations

The Securities and Exchange Commission issued a notice on September 9, 2026 (FR Doc No. 2026-18278, Release No. 34-106267) permitting broker-dealers to include a debit in their customer-protection rule reserve computations when depositing cash, U.S. Treasury securities, or qualified customer securities to meet a margin requirement of ICE Clear Credit LLC (ICC).

The change stems from amendments adopted on December 13, 2023 that added Item 15 and Note H to the reserve-computation formula in Rule 15c3-3a. Under Note H, a broker-dealer may record a debit equal to the amount of margin required and on deposit with a U.S. Treasury securities clearing agency, provided a series of conditions are satisfied.

ICC filed a Form CA-1 application on August 1, 2025, seeking registration as a clearing agency for secondary cash-market and repo transactions in U.S. Treasury securities. The Commission approved the application on January 30, 2026 (Exchange Act Release No. 104762). Subsequently, on July 24, 2026, the Division of Trading and Markets approved proposed rule change SR-ICC-2026-002 (Exchange Act Release No. 105986), which modified ICC's rulebook to meet the Note H conditions. Staff analysis concluded that ICC's rules adequately implement the customer-protection objectives.

Accordingly, the Commission's September 3, 2026 notice advises broker-dealers that they may now include the described debit in their customer and proprietary account-holder (PAB) reserve calculations. The notice cautions that any future ICC rule changes that undermine the customer-protection objectives could lead to withdrawal of this permission, at which point broker-dealers would no longer be able to count the debit.

Broker-dealers seeking clarification may contact the Office of Broker-Dealer Finances, Division of Trading and Markets, at the numbers listed in the notice.