Clearing, Risk and Regulation (CRR)

Fundamental Change is coming to the market structure of largest and deepest government debt market in the world.

The Securities and Exchange Commission (SEC) rules, announced in Dec 2023, will fundamentally alter the structure of the US Treasury Markets. A large volume of cash and repo activity that is currently uncleared will be mandated to clear at a central counterparty – the Government Securities Division of the Fixed Income Clearing Corp (FICC) at the Depository Trust and Clearing Corporation (DTCC) (herein “FICC”).

At an absolute minimum, we recommend firms active in the US Treasury Repo and Cash Markets need to analyse their trading flow and understand if the activity is in scope of the mandate. Deadlines for compliance are in 2025 and 2026 but the scope of change is likely to be extensive.

We can provide a full end to end solution covering regulatory advisory, assessment, and implementation. Alternatively, we can enhance your existing project by providing a focused approach to single or multiple areas highlighted in ‘Our Specialisms’.

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Our Treasury Clearing Readiness Assessments

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Our Expertise

Global Expertise

We have worked in a variety of different markets from across the globe and are adept at applying best practice whilst ensuring alignment to local market conditions, products, participants and regulation.

Global Clients

We have advised CCPs and Exchanges on the design, build and implementation of services, including clearing participant buy-in. Our clients range from international CCPs / exchanges to regional CCPs located in Japan, Australia, Singapore, Hong Kong, Taiwan , Mexico, South Africa, Qatar, Indonesia, Nigeria, and Hungary.

Intellectual Property

We have built up a large library of collateral and intellectual property covering the full range of CCP activities – ‘CCP in a box’ – encompassing governance, risk waterfall structures, workflow, risk management, operations and technology.

Target Operating Model

When advising exchanges / CCPs on new services, not only do we advise on optimal business models but we are experienced at ensuring that we obtain collaboration and buy-in from a range of interested parties – potential clearing participants, investors, regulators and other stakeholders.