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U.S. Treasury central clearing: preparing for profound market structure change

The financial services industry is in a race to comply with the U.S. Treasury and Repo Markets central clearing mandate.

The Securities and Exchange Commission (SEC) decision to mandate central clearing for U.S. Treasury and Repo Markets will have a significant impact on the financial services industry. This sweeping change will impact a broad array of financial market participants, including banks, broker-dealers, insurance companies, corporate end users and institutional investors. Achieving full compliance with the clearing of cash secondary market transactions by December 31, 2025, and repo transactions by June 30, 2026, will present complex challenges to market participants.

The rule is aimed at creating greater transparency and mitigating risk through a more standardized and secure settlement process for U.S. Treasury securities and repos. For sell-side firms, important decisions regarding market access, capital allocation and client solutions will have to be made. For buy-side firms, the potential for increased clearing fees and margin requirements will have to be carefully analyzed. Across the industry, the scope of the central clearing mandate will be far-reaching, extending beyond the balance sheet to impact areas that include client service delivery, legal frameworks and financial resource allocation.

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U.S. Treasury clearing videos

How does the evolution of Treasury Clearing affect the 15c3-3 reserve for your firm?

What do SEC-registered broker-dealers need to know about U.S. Treasury central clearing and the Rule 15c3-3 debit? Michael Quinn, Managing Director, Financial Advisory Accounting Services, Ernst & Young LLP, explains what should be factored into your calculations.

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What key dimensions should firms evaluate for clearing access models?

Have you chosen an access model for U.S. Treasury central clearing? Mark Nichols, Principal, Capital Markets Strategy and Business Transformation, Ernst & Young LLP, shares what sell-side and buy-side firms should consider when selecting an access model.

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How can you elevate tech capabilities for seamless USTC implementation?

Are you ready for the technological impacts from the transition to U.S. Treasury central clearing? Adam Hirsh, Managing Director, Financial Services Capital Markets Technology, Ernst & Young LLP, shares the key capabilities that buy-side and sell-side firms, asset servicers and vendors should address for a seamless implementation.

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What’s the impact of Treasury Clearing on capital and liquidity?

Do you know how U.S. Treasury central clearing will affect your regulatory capital and liquidity? John Boyle, Principal, Capital Markets Risk and Business Transformation, Ernst & Young LLP, explains the factors that will help banks and broker-dealers assess the impact.

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Why EY?

Our multidisciplinary EY team is comprised of individuals with securities clearing, risk management, technology, data, margin modeling and central clearing infrastructure experience who help leading financial services firms navigate the intricacies of the U.S. Treasury central clearing mandate. The extensive required changes are reshaping market structure, and market participants must act quickly to assess business impacts and plan effectively for implementation. As further clarifications to the rule are made available, our dedicated EY team is monitoring regulatory developments and is equipped to provide you with a strategic, nimble approach to manage change.

EY U.S. Treasury central clearing mandate services

These six pillars are essential to meet the U.S. Treasury and Repo Market central clearing mandate. 


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    U.S. Treasury central clearing team

    Mark Nichols

    Principal, Capital Markets Strategy and Business Transformation, Ernst & Young LLP
    Capital markets growth and innovation advisor. Delivering digital transformation strategy for global investment banks and institutions. Digital assets leader. Husband. Father. Travel enthusiast.
     

    Brendan Maher

    Managing Director, Financial Services Consulting, Ernst & Young LLP
    Solutions-oriented leader. Father of two. Lifelong NJ/NYC resident.
    New York, USA

    Anuj Mallick

    Principal, Banking and Capital Markets, Ernst & Young LLP
    Strategist with a focus on technology, risk and innovation. World traveler. Chess player. Amateur street photographer. Enjoy spending time with my wife and two sons.
    Washington, DC, USA

    Adam Hirsh

    Managing Director, Financial Services Capital Markets Technology, Ernst & Young LLP
    Capital markets technology advisor who delivers technology platform solutions for capital markets operations. Avid tennis player. Passionate Penn State football fan.
    New York, USA

    John Boyle

    Principal, Capital Markets Risk & Business Transformation, Ernst & Young LLP
    Capital markets and risk transformation leader focused on cost and financial resource optimization, process efficiency, and advanced analytics. Father. Avid traveler.
    New York, USA

    Kerrie Cadugan

    Managing Director, Financial Accounting Advisory Services, Ernst & Young LLP
    Detail-oriented leader. Mother of three. Enjoys boating and beaching on Long Island.
    New York, USA

    Jean-Paul Botha

    Managing Director, EY Law, Ernst & Young LLP
    Legal pragmatist. Aspiring gourmet chef. Devoted father of three boys who enjoys exploring the great outdoors and all that Minnesota has to offer.
    Minneapolis, USA

    Phung Nguyen

    Managing Director, Capital Markets Trading and Risk Management Technology and Analytics, Ernst & Young LLP
    Problem-solver with an engineering mindset. Enjoys spending time with family and friends. Often found fishing or playing Jenga with his daughters or poker with his friends.
    New York, USA

    Neal Ullman

    Managing Director, Banking and Capital Markets Consulting, Ernst & Young LLP
    Senior advisor with deep industry experience in capital markets. Strategist with a focus on business transformation and client delivery. Builder of global teams.
    New York, USA

    Ray Agoglia

    Senior Manager, Capital Markets Strategy and Business Transformation, Ernst & Young LLP
    Strategic thinker. Builder of high-performing teams. Often found at the beach with his family, playing beach volleyball and surfing.
    New York, USA

    Colin Egan

    Manager, Capital Markets Strategy and Business Transformation, Ernst & Young LLP
    Capital markets strategist and advisor at the vanguard of financial market reforms. Avid snowboarder. New York Yankees and Green Bay Packers fan.
    New York, USA

    Rachel Rausa

    Manager, Financial Services Capital Markets Technology, Ernst & Young LLP
    Capital markets tech strategist. NYC foodie. Philly sports fan.
    New York, USA

    Lisa Rothenberg

    Senior Manager, EY Law, Ernst & Young LLP
    Thought leader in the capital markets legal space. Believer in the restorative power of beach vacations.
    New York, USA

    Michael Quinn

    Managing Director, Financial Accounting Advisory Services, Ernst & Young LLP
    People-focused leader. Distance runner and occasional triathlete. On winter weekends can be found skiing in Vermont.
    New York, USA

    Barry Barretta

    Managing Director, Financial Services Risk Management, Ernst & Young LLP
    Risk strategist who embraces the transformational impacts of technology. Devoted family man and loyal friend. Golden retriever enthusiast. Avid skier and cyclist. Reformed golfer.
    Chicago, USA

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