SECFinal Rule
Standards for Covered Clearing Agencies for U.S. Treasury Securities and Application of the Broker-Dealer Customer Protection Rule With Respect to U.S. Treasury Securities
Finance & Banking
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Summary
This regulation sets safety standards for financial companies that clear and settle trades of U.S. Treasury securities (government bonds), and ensures that brokers protect customer money and assets when Treasury trades are involved. The rules aim to prevent financial failures and protect investors if a brokerage firm goes out of business.
Key Points
- 1Requires clearing agencies that handle Treasury security trades to follow strict operational and financial safety standards to reduce systemic risk
- 2Extends customer protection rules to Treasury securities so that if a broker fails, customers' Treasury holdings are safeguarded like other investments
- 3Applies to all major financial institutions and brokers that trade government bonds on behalf of customers
- 4Establishes requirements for how clearing agencies must manage risks, maintain capital reserves, and protect customer assets during transactions
- 5Helps ensure the Treasury market remains stable and protects individual investors from losses due to broker or clearing house failures
Key Dates
Published
March 4, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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