SEC Weighs Next Steps on US Treasuries Central Clearing Rule

Wall Street’s top regulator is considering ways to ease how the market transitions to a sweeping rule requiring hedge funds, banks, and other firms trading in US Treasuries to centrally clear more of their trades.

The US Securities and Exchange Commission and its staff have been debating expanding the so-called inter-affiliate exemption in the major central clearing rule approved by the agency in 2023, SEC Commissioner Mark Uyeda said Wednesday in prepared remarks at a Federal Reserve Bank of New York conference.

The agency could widen the exemption to include cash transactions and other types of affiliates. It’s also exploring ...