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MFA Statement on the Finalization of the SEC’s Treasury Clearing Rule

WASHINGTON, D.C. — Today, in response to the SEC finalization of the Treasury Clearing rule, Managed Funds Association (MFA) issued the following statement from its Executive Vice President, Chief Counsel, Head of Global Regulatory Affairs, Jennifer Han:

MFA is supportive of efforts to increase the central clearing of transactions in the U.S. Treasury markets. We appreciate that the SEC did not single out alternative asset managers for disparate treatment from other market participants in the cash clearing mandate. However, we are disappointed that the SEC did not exclude tri-party repo transactions from the clearing mandate, as counterparty risk is already mitigated and well regulated by banking entities. Ultimately, how the SEC and the Fixed Income Clearing Corporation implement the final rule, especially as it pertains to fair access to client clearing and cross margining, will determine the rule’s impact on market liquidity and efficiency in the Treasury markets. MFA remains committed to working with regulators to maintain the primacy of the U.S. Treasury markets.” — Jennifer Han, MFA Executive Vice President, Chief Counsel, Head of Global Regulatory Affairs

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About the Global Alternative Asset Management Industry

The global alternative asset management industry, including hedge funds, credit funds, and crossover funds, has assets under management of $5.5 trillion (Q3 2023). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.

About Managed Funds Association

Managed Funds Association (MFA), based in Washington, DC, New York, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 170 member firms, including traditional hedge funds, credit funds, and crossover funds, that collectively manage nearly $3 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.

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