Overboard: ditching clients imperils Treasuries clearing mandate

Standardised docs a drop in the ocean as dealers eye potential costs of sponsored Treasuries clearing

Large US dealers are warning that the practice of so-called offboarding of inactive or unprofitable clients poses a substantial obstacle to the Securities and Exchange Commission’s (SEC) drive for mandatory central clearing of repo and cash US Treasuries transactions.

“There seems to be an underlying expectation that all the banks are going to happily bring in every possible client out there,” says Mike Cloherty, head of US rates strategy at UBS. “Dealers don’t even keep folks they have a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here