Navigating the U.S. Treasury Central Clearing Mandate: Opportunities and Challenges for European Market Participants

Over the past decade, both public and private sectors have worked to strengthen the resilience of the U.S. Treasury market. Now, the landscape is set for its most transformative shift in decades: the SEC’s central clearing mandate.This sweeping reform aims to bolster market stability by enhancing intermediation, improving data transparency, expanding central clearing, and addressing leverage and liquidity risks. At its core, the mandate will require central clearing for an estimated $4 trillion in daily Treasury transactions—placing a central counterparty (CCP) between every eligible buyer and seller.This session will unpack what these changes mean for European institutions. We’ll explore the global reach of the rule, access models, and the roadmap for readiness. Special focus will be given to the implications for margin, liquidity, collateral, and default management processes—highlighting both the challenges and the strategic opportunities for European players navigating this new terrain.