October 11, 2024 - In a letter filed with the Securities and Exchange Commission (SEC) today, the FIA Principal Traders Group (FIA PTG) commented again on the Fixed Income Clearing Corporation’s (“FICC”) proposals to revise its customer clearing access models, to modify its margin segregation rules and to adopt a trade submission requirement.
FIA PTG said that while we appreciate FICC providing more information regarding its offering, we do not believe that all of the concerns raised regarding the Proposals have been addressed and encourage the SEC and the official sector to take an active role in ensuring an efficient market transition to central clearing. Next steps include:
- Prioritizing Customer-Access Reforms
- Addressing Bundling of Clearing & Execution Services
- Resolving Other Outstanding Concerns including: Triennial Trade Submission Review and Provision of Data Regarding Use of Various Client Access Models.
In conclusion FIA PTG said that with a little more than a year until the Commission’s cash clearing mandate becomes effective, it is critical that the industry resolves existing impediments to client clearing now. We look forward to continuing to engage with FICC and the Commission to facilitate an efficient transition of Treasury market activity to central clearing.
