Treasury Clearing Mandate: An Industry Pulse Check 

DTCC is committed to guiding and informing the industry as it prepares for expanded central clearing of U.S. Treasuries activity. This is scheduled to come into effect in December 2025 for cash transactions and June 2026 for repo transactions.    

Given the Fixed Income Clearing Corporation’s (FICC) role at the centre of this major market transformation, we’ve released the findings of a new survey that serves as a pulse check of how the industry is progressing in its preparations. The survey gives a better understanding of how clients plan to use FICC’s access models and how margin and liquidity-risk management resources may be impacted by the rule.   

Among the survey respondents were 83 sell-side institutions (all full Netting Members of the Government Securities Division (GSD) of FICC) – inclusive of all the major primary dealers. These insights provide further confidence, across the wider community, of the impacts of the Treasury Clearing Mandate on the Treasury market.   

Here are some of the takeaways from our survey:  

Treasury Clearing Volume  

FICC’s daily Treasury Clearing activity is expected to increase by more than $4 trillion.   

Access Models  

The Sponsored Service continues to be the preferred approach at this time; however, survey respondents showed an increased interest in usage of the Agent Clearing Member (ACM) Service. Account setup and indirect participant onboarding has started in advance of the Treasury Clearing Mandate go-live dates. FICC will continue to facilitate a smooth transition.  

Done-Away Clearing  

There is growing evidence of the adoption of a done-away clearing model for indirect participants.    

Margin  

Treasury Repo and Buy/Sell activity estimates indicate an increase in aggregate margin (VaR) for the respondents’ portfolios of approximately $58.4 billion, with approximately $27 billion (or 46%) of the aggregate incremental VaR representing segregated indirect participant margin.  

Liquidity  

Responses to the survey indicate a potential maximum daily liquidity need of $84.5 billion, which would point to a total Capped Contingency Liquidity Facility (CCLF) size of $109.9 billion under current parameters and the outlined assumptions. Since 2021, the CCLF facility has ranged between $71.0  billion and $128.4 billion.    

Affiliate Clearing  

The majority of respondents is planning to choose indirect access for their affiliates.