CFTC issues warning over SEC repo clearing proposal.

A commissioner at the US futures regulator has said the proposed expansion of clearing into US cash Treasuries, including the huge repo market, should be carefully implemented to avoid a wider universe of instruments being caught by the regulation. Speaking at the Commodity Futures Trading Commission (CFTC) global markets advisory committee on Monday, commissioner Christy Goldsmith Romero said the Securities and Exchange Commission (SEC) proposal should adopt a tight definition of cash markets. The SEC proposed rule amendments in September 2022 requiring direct market users to clear eligible secondary market transactions, including repo trades, in US Treasury securities. [Extracted from the article]