FICC calls for rehypothecation relief to scale US Treasuries clearing

Current prohibition on margin re-use penalises sponsored clearing of cash instruments

US securities and exchange commission

The Fixed Income Clearing Corporation is urging its regulator to overturn a ban on rehypothecation of client margin in its sponsored clearing model, arguing the current rules may block the expansion of central clearing in the US Treasury market.

FICC called on the US Securities and Exchange Commission (SEC) to allow broker-dealers to pass margins received from clients onward to FICC, a move that would bring the central counterparty (CCP) in line with the Options Clearing Corporation, where such

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