The Depository Trust & Clearing Corporation (DTCC) has proposed a rule change to its Clearing Agency Securities Valuation Framework, impacting $4 trillion in U.S. Treasury transactions with daily central clearing requirements.
This shift emphasizes regulatory compliance, affecting traditional market infrastructure but leaving cryptocurrencies untouched.
DTCC Mandates Daily Central Clearing for $4 Trillion
The new rule proposed by the Depository Trust & Clearing Corporation (DTCC) revises its Clearing Agency Securities Valuation Framework. Daily central clearing will be required for $4 trillion in U.S. Treasury transactions.
This decision involves DTCC subsidiaries, such as the Fixed Income Clearing Corporation. The move aims to comply with amended SEC standards without allocating new capital but demanding compliance from banks and broker-dealers.
Financial Institutions Face New Regulatory Adjustments
Financial institutions and funds will need to adjust operations to meet new regulatory requirements. This change intends to enhance financial stability and improve transparency in the trading of U.S. Treasury securities.
The regulation primarily influences the infrastructure of traditional markets without affecting cryptocurrency assets. Historical trends suggest similar changes have bolstered market trust in clearance processes, helping prevent systemic risks. Frank La Salla, CEO, DTCC, stated, “The proposed rule change SR-DTC-2025-006 addresses essential updates to our Clearing Agency Securities Valuation Framework, reflecting our commitment to enhance risk management standards.”
Changes Strengthen Market Stability and Resilience
Similar changes have been mandated to improve clearinghouse robustness during past financial adjustments. Such regulatory updates typically reinforce market stability, aligning with goals to enhance systemic resilience.
Kanalcoin experts predict that, like past changes, the new policies will strengthen the foundations of market operations. The focus remains on mitigating risks through regulatory adaptations based on historical data.
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