The U.S. Securities and Exchange Commission is considering the next steps for central clearing rules for U.S. Treasury bonds in order to facilitate market participants' compliance.

The highest regulatory agency on Wall Street is considering taking measures to ease the difficulty of transitioning to a comprehensive rule that requires hedge funds, banks and other companies trading in the US bond market to clear more trades centrally. Securities and Exchange Commission commissioner Mark Uyeda attended a meeting at the New York Fed on Wednesday and delivered a prepared speech stating that the Commission and its staff have been discussing the issue of expanding the so-called affiliate exemption scope in the major central clearing rule approved by the Commission for 2023. Uyeda indicated that the Commission may expand the exemption scope to include spot transactions and other types of affiliates. In addition, the agency is also studying how to use exemptions to handle internal liquidity and collateral management transactions.