A greater number of US Treasury bond trades will now need to be cleared centrally following a historic four to one vote by the Securities and Exchange Commission (SEC) last week. The vote was the final step in the process to implement wider mandatory central clearing of the $26tn US Treasury market, where as much as 80% is thought to be uncleared.
This additional mandate for central clearing aims to boost the resilience of the system and could require as much as $1tn of daily trades to be handled by independent clearing houses.
