The Fixed Income Clearing Corporation (FICC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), has submitted proposed rule changes to the Securities and Exchange Commission (SEC) designed to prepare the U.S. Treasury market for mandatory central clearing, according to a filing made on September 23, 2025. The changes focus on expanding access models and refining margin requirements, aligning with forthcoming SEC mandates.
The proposed rule changes address the Commission’s new requirements for broker-dealers posting margin held for customers and other broker-dealers to a U.S. Treasury clearing agency, as confirmed by an SEC statement. Specifically, FICC seeks to establish segregated accounts for both direct and indirect participants, including a minimum $1 million cash margin requirement for each segregated indirect participant. The changes also aim to consolidate the methodology for calculating margin requirements.
A key component of the overhaul involves renaming and consolidating existing correspondent clearing/prime broker services under the umbrella of an “Agent Clearing Service.” Under this model, submitting members will be designated “Agent Clearing Members,” and their client firms will be known as “Executing Firm Customers.” FICC stated the changes are intended to highlight the similarities between the Agent Clearing Service and other agent clearing models.
In addition to the access model changes, FICC is introducing an Agent Clearing (ACS) Triparty Service, an expansion of its existing Agent Clearing Service. This new service is designed to streamline triparty repurchase agreement (repo) transactions by integrating with The Bank of New York Mellon’s (BNY) triparty infrastructure, leveraging BNY’s Global Collateral Platform—the largest network for Treasury triparty repo settlements—to centralize and safeguard trades. The ACS Triparty Service will accommodate both “done-with” and “done-away” execution styles.
The SEC approved FICC’s rule filings related to access models and segregated accounts and margin, according to a report from The TRADE. The approval signals a move toward greater resilience and the management of rising volumes and volatility as the market prepares for the mandatory clearing mandate.
FICC serves as a central clearinghouse for fixed income securities, processing trillions of dollars in daily transactions. The proposed changes are intended to enhance market liquidity and reduce operational costs as the U.S. Treasury market adapts to the new regulatory landscape.
