Treasury Market Practices Group Seeks Comment on Consultative White Paper and Proposed Best Practice Recommendations for U.S. Treasury Repo Risk Management
The Treasury Market Practices Group (TMPG) today released a consultative white paper Non-Centrally Cleared Bilateral Repo and Indirect Clearing in U.S. Treasury Market: Focus on Margining Practices. The white paper identifies several risks posed by current risk management practices in the U.S. Treasury repurchase agreement (repo) market. In light of these risks, the TMPG is proposing updates to its existing Best Practices for Treasury, Agency Debt, and Agency Mortgage-Backed Securities Markets, including recommending that, consistent with appropriate risk management of counterparty exposures, all Treasury repo should include prudent haircuts (or margin) on the value of the securities, in concert with other risk management techniques. The TMPG also released a proposed set of Frequently Asked Questions (FAQs) to provide further guidance on the recommended proposed best practices. The TMPG seeks comment on this material by April 30, 2025.
TMPG Releases Consultative White Paper on Clearing and Settlement in the Market for U.S. Treasury Secured Financing Transactions
The Treasury Market Practices Group (TMPG) today released a consultative White Paper on Clearing and Settlement in the Market for U.S. Treasury Secured Financing Transactions. The White Paper describes the various clearing and settlement arrangements for U.S. Treasury secured financing transactions (SFT), provides detailed maps that illustrate the process flows, and catalogs potential areas of risk. The TMPG seeks public feedback on the following aspects of the secondary Treasury market: the accuracy and completeness of various SFT clearing and settlement arrangements described, risk and resiliency issues identified, and any other feedback and suggestions.
TMPG Releases Updates for Working Groups on Clearing and Settlement Practices for Treasury SFTs, Treasury Market Data and Transparency
The Treasury Market Practices Group (TMPG) today released updates for two of its ongoing working groups: Clearing and Settlement Practices for Treasury SFTs, and Treasury Market Data and Transparency. First, the TMPG released a draft set of maps and summary note that illustrate current clearing and settlement processes for common securities financing transaction types for Treasuries —repurchase and securities lending agreements (collectively referred to as Secured Financing Transactions or SFTs). Second, the TMPG released a draft catalogue and summary note of data currently available in the Treasury cash, futures and financing markets.
TMPG Releases Best Practice Recommendations on Clearing and Settlement
The Treasury Market Practices Group (TMPG) today updated the existing Best Practices for Treasury, Agency Debt and Agency Mortgage-Backed Securities Markets by incorporating recommendations related to clearing and settlement practices in the secondary market for U.S. Treasury securities. The TMPG believes that these updates will provide necessary guidance for market participants and promote the integrity and efficiency of TMPG covered markets. The TMPG has also released a supplementary note on the purpose and breadth of these new best practice recommendations related to clearing and settlement. A proposed draft was published in April. Additionally, the TMPG has published a final version of the white paper on clearing and settlement.
TMPG Seeks Comment on Proposed Best Practice Recommendations on Clearing and Settlement
The Treasury Market Practices Group (TMPG) is proposing updates to its Best Practices for Treasury, Agency Debt and Agency Mortgage-Backed Securities Markets to incorporate recommendations supporting efficient clearing and settlement in these markets. The proposed best practice recommendations address several risk and resiliency issues identified by TMPG members in the consultative White Paper on Clearing and Settlement in the Secondary Market for U.S. Treasury Securities published in July 2018.
TMPG Conducts Outreach Following Clearing and Settlement Consultative White Paper Publication
Following the publication of the consultative White Paper on Clearing and Settlement in the Secondary Market for U.S. Treasury Securities, the TMPG conducted outreach with a wide range of industry groups and participants.
TMPG Releases Consultative White Paper on Clearing and Settlement in the Secondary Market for U.S. Treasury Securities
The Treasury Market Practices Group (TMPG) today released a consultative White Paper on Clearing and Settlement in the Secondary Market for U.S. Treasury Securities. The White Paper describes the various clearing and settlement arrangements for U.S. Treasury securities, provides detailed maps that illustrate the process flows, and catalogs potential areas of risk. The TMPG seeks public feedback on the following aspects of the secondary Treasury market: the accuracy and completeness of various clearing and settlement arrangements described, risk and resiliency issues identified, and any other feedback and suggestions.
