FIA responded to the Fixed Income Clearing Corporation’s (FICC) proposal to implement the SEC’s new clearing mandate for US Treasurys. In April, FIA commented on previous FICC proposals to update its access models and segregation rules in anticipation of the mandate.
FIA’s letter urges FICC to provide flexibility for market participants to clear US Treasurys at multiple clearinghouses, as they may arise in the future. As drafted, FICC’s rule would prevent netting members from clearing US Treasurys through clearing agencies other than FICC.
FIA also asks that FICC streamline its proposed program to monitor compliance with the mandate by removing overlapping requirements to bring it more in line with other widely implemented and successful regulatory compliance regimes.
Read the letter in full.
