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The Evolution of Treasury Market Structure

By Laura Klimpel, DTCC General Manager of Fixed Income Clearing Corporation (FICC) & Head of SIFMU Business Development | 1 minute read | May 9, 2023

In September 2022, the SEC published a proposal to require the expansion of central clearing of certain U.S. Treasury security transactions, in an effort to make this vital part of the capital markets more efficient, competitive and resilient. The move aims to drive more market participants to settle trades in U.S. Treasury securities at central clearinghouses instead of via bilateral OTC transactions.

Related:  Learn More About U.S. Treasury Clearing

Last month, I joined other several other market experts at the FICC Forum: The Evolution of Treasury Market Structure to discuss this significant proposal. We encourage you to read our FAQs about FICC’s current central clearing structure and capabilities and watch a replay of the event.

Our panelists voiced support for the SEC’s objectives, but everyone also agreed that more data and study are needed for fuller transparency into the expected implications of the proposal. If a final version of the proposal is adopted, successful implementation will depend on all market participants having identified the biggest impacts ahead of time

To facilitate greater industry discussion and understanding of the impacts of this proposal, FICC is conducting an anonymous, in-depth survey of clients between now and the end of June. We encourage firms to complete the industry survey, which will allow us to compile and make available to the industry and public sector important data around the proposal. If you haven’t received a survey and would like to participate, please contact us at [email protected].

Laura Klimpel
Laura Klimpel DTCC Managing Director, General Manager of Fixed Income Clearing & Head of SIFMU Business Development