#United States #New York #Broadridge #U.S. Treasury #SIFMA

U.S. Treasury Central Clearing Readiness Survey Report

In a significant development for the financial sector, a comprehensive survey orchestrated by SIFMA, BNY, Broadridge, and DTCC, in partnership with The ValueExchange, has shed light on the current state of preparedness among market participants for U.S. Treasury central clearing. Conducted in August 2025 and involving insights from 330 industry professionals across the globe, the survey marks an essential milestone as the cash implementation deadline approaches within just a year.

The findings showcase a stark contrast between U.S. firms and their European and Asian counterparts. A staggering 71% of respondents from the U.S. reported being 'very familiar' with the impending changes to Treasury central clearing, with 25% indicating they are 'somewhat familiar.' This high level of understanding contrasts sharply with the situation overseas. Only 27% of European participants expressed a similar confidence, while 18% admitted they were 'not familiar at all' with the new rule changes. Participants from the Asia-Pacific region conveyed a feeling of being 'somewhat familiar,' suggesting that further educational initiatives are crucial in that region.

This disparity is significant, as the survey emphasizes that knowledge gaps may impede European and Asian firms from timely compliance. Notably, only 38% of firms anticipate that U.S. Treasury central clearing will lead to an increase in operational efficiency; instead, many are bracing for heightened operational and treasury costs. Indeed, 38% project that margins could escalate by over 25%, and 55% foresee a rise in regulatory capital costs. Furthermore, 66% of firms report necessary back-office changes as a pivotal operational impact, predominantly affecting the entire organization for sell-side firms, whereas buy-side firms see this largely concentrated at their repo desks.

Steve Byron, Managing Director of SIFMA, expresses optimism regarding the readiness of U.S. firms while acknowledging the complexities ahead. “As we approach the one-year countdown to cash implementation, we are pleased to see such preparedness among U.S. firms. However, we must not overlook the importance of regulatory clarity regarding inter-affiliate flows and final rules concerning new Central Clearing Agencies (CCAs).”

These insights indicate that while U.S. firms are making commendable progress, regulatory direction now stands as the most significant barrier to readiness. The survey highlights that 54% of firms feel confident they will meet the looming cash deadlines, yet 45% emphasize the necessity of clear regulatory frameworks by the end of 2025.

Additionally, as firms ramp up preparations, the impending deadlines present a formidable challenge. Alarmingly, 29% of buy-side firms do not foresee completing their preparations before the end of 2027. Many firms are still deep in the research phase, with a staggering 77% of buy-side firms not advancing beyond theoretical discussions. This slow progress may jeopardize compliance timelines, underscoring the urgency to transition from planning to execution.

Industry leaders such as Laura Klimpel, Managing Director at DTCC, express the need for firms to accelerate preparations. “Our goal is to ensure all firms impacted by expanded U.S. Treasury clearing requirements are equipped to meet these challenges. The results of this survey clearly underline the urgency and need for further engagement with all market participants.”

The survey ultimately shows a strong readiness among U.S. firms poised to lead in adaptation to the new regulatory landscape; however, it uncovers a pronounced lag in awareness and preparedness in Europe and Asia. With a proactive approach, stakeholders aim to bridge this gap and work collectively towards a successful transition in the evolving framework of U.S. Treasury central clearing.

In conclusion, the diverse results of this survey raise important considerations for firms globally, suggesting that as the implementation deadline approaches, a light must shine on addressing regulatory uncertainties and building awareness worldwide. Successful navigation through this crucial transition will require robust communication, strategic planning, and collaborative efforts across regions.