SEC grants exemptive relief for select inter-affiliate and non-U.S. repo trades

The Securities and Exchange Commission issued exemptive relief on Oct. 30 2026 that removes specific repo transactions from the definition of eligible secondary-market transactions under the Treasury clearing rules. The relief applies to broker-dealers and other market participants that are subject to the rules adopted in Dec. 2023.

The exemption excludes (i) certain repo transactions involving non-U.S. counterparties, subject to the limits and conditions described in the relief notice, and (ii) repo transactions between a direct participant of a U.S. Treasury securities clearing agency and any affiliated entity that is not an "investment company" as defined in Sec. 3 of the Investment Company Act of 1940, provided the affiliate otherwise meets the definition of an affiliated counterparty in Rule 17ad-22(a).

The action follows the SEC's extension of the original compliance dates for the Treasury clearing rules and its stated readiness to continue engaging with market participants on compliance, operational, and interpretive questions. In Sep. 2025 the Commission launched a one-stop webpage that consolidates implementation updates, FAQs, Commission and staff statements, and other resources.

Commissioner Mark T. Uyeda, designated by Chairman Paul S. Atkins to lead the agency's transition initiative, said, "The Commission has listened carefully to market participants about the challenges of implementing our Treasury clearing rules... Today's targeted relief addresses practical concerns while preserving the important benefits of central clearing."

Participants seeking clarification may contact SEC staff in the Division of Trading and Markets by emailing tradingandmarkets@sec.gov or calling 202-551-5777.