What will the SEC clearing mandate do to repo markets?

Following ISDA’s announcements regarding our collaboration in repo markets, we can now start looking at the data.

The first monthly report gives us a baseline for tracking how the US Treasury repo market evolves ahead of the SEC clearing mandate, plus some useful background on the indicators themselves.

Three things already stand out:

• Client activity in clearing is already significant.
• Triparty is becoming more important.
• Hedge funds appear to be the current driver of growth in sponsored volumes.

These are the types of market-structure questions we built the indicators to monitor and are expected to be key themes going forward.

US Treasury Repo Market Indicators

Introducing our new monthly repo report, in collaboration with ISDA. See their announcement below:

What Is It?

We have looked at the public data on US repo markets and designed seven indicators that track clearing adoption for US Treasuries.

Drawing heavily on our US repo market guide, we analyse clearing behaviour in three of the four segments of the repo market:

The indicators cover:

• Overall clearing adoption.
• Sponsored clearing activity, to focus on client activity:
  • Sponsored clearing as a percentage of cleared bilateral and triparty activity.
  • Sponsored clearing preferences: bilateral or triparty.
  • Sponsored triparty clearing relative to uncleared triparty activity.
• Composition of cleared activity by market participant type – money market funds, other sponsored members, primary dealers and other direct members of CCPs.

Why Now?

The indicators provide timely monthly insights into market structure trends in US Treasury repo markets ahead of the upcoming SEC mandate for repo clearing.

• Measures clearing adoption in US Treasury repos ahead of the mandate. Will it gradually increase or will there be a step change on the implementation date?
• Allows market participants to benchmark their own adoption of repo clearing versus broad market averages.
• Tracks broad-based volumes in clearing, monitoring the impact of upcoming clearing mandates on overall market activity.
• Monitors market participant behaviours across different repo market segments.

April 2026

At launch, the latest data was for April 2026, providing us with our first set of indicator values. The front page gives a nice “waterfall” of numbers by repo market segment:

Showing:

• Average Daily Volume traded in April 2026 was $6.4Trn for US repos. This counts both sides of a trade, enabling us to split market activity according to sponsored and direct member legs.
• $1.9Trn (~30%) was in Triparty repos.
• $0.7Trn (~37%) of cleared triparty repos were by sponsored members.
• Likewise we analyse bilateral repo activity – see indicators below.
• Overall, sponsored repo activity recorded an ADV of $2.4Trn, representing 38% of total cleared repo activity.

The Indicators

The indicators and the underlying data are available on our FREE Actrix Apps:

Here you will find:

• All seven indicators.
• Interactive charts (pan, zoom, select per series etc).
• Download links in the top-right to access the underlying data.
• All for FREE!

I will run through each Indicator in turn to highlight what the data shows:

Indicator 1: Cleared volumes – Direct or Sponsored?

Showing:

• Total volumes in cleared US repo. At the moment, these are all transacted at DTCC’s FICC.
• The data is split by Direct members (i.e. dealers) and Sponsored members (i.e. clients).
• The split between Direct and Sponsored has been remarkably stable all year at 38-40%.
• Total volumes in clearing have declined slightly since their peak at the end of 2025. Interesting to see that volume growth just beginning to tail-off this year.

Indicator 2: Bilateral or Triparty?

Showing:

• The same total volumes but this time split by Bilateral and Triparty activity.
• The trend suggests increasing demand for cleared triparty repo, moving from 26% to 30% of cleared activity over the past year.
• Bilateral repo volumes have reduced from their peak in November 2025 and are no longer close to breaking above $5Trn ADV.

Indicator 3: Bilateral repo – Direct or Sponsored?

Showing:

• A focus on bilateral repo only.
• Sponsored volumes account for 38.5% of the bilateral cleared market, which has reduced slightly from a 40% high at the end of last year.

Indicator 4: Triparty repo – Direct or Sponsored?

Showing:

• This time, a focus on cleared triparty repo only.
• Sponsored volumes account for 37% of the triparty cleared market.
• Obviously total volumes are much lower in cleared triparty, but they haven’t seen the same reduction in volumes during 2026 as bilateral markets.

Indicator 5: Sponsored repo – Bilateral or Triparty?

Showing:

• Sponsored (“client”) activity only. This is expected to be the most impacted by the clearing mandate, with one of the goals of the SEC to move more client repo into clearing.
• Volumes have certainly increased, but now seem to have plateaued at $2.5Trn ADV.
• Will clients act as the “volume engine” in cleared repo as they have done in swap markets? Time will tell.

Indicator 6: Triparty markets – Cleared or Non-cleared?

Showing:

• And now for a different type of indicator. One designed to monitor not just clearing, but also the non-cleared (uncleared) markets.
• We only have data available for Triparty markets at the moment (largely thanks to BNY).
• We see that clearing adoption has risen over time, with the relative size of sponsored triparty now 16% of the uncleared market.
• We can’t confidently state that x% of the repo market is cleared or uncleared with this data but the trend is the important part.

Indicator 7: Who is doing all the clearing?

Showing:

• Another different type of indicator.
• Tracking activity by Money Market Funds and then other Sponsored members (who I think of as Hedge Funds and “others”).
• And on the dealer side, whether it is Primary Dealers or other direct members who are driving volumes.
• We certainly don’t see this type of transparency in swap markets and it will be fascinating to see the growth driver.
• The early data suggests that “Other Sponsored Members” are driving the largest increase in sponsored volumes so far – which are most likely hedge funds.
• Are they all “basis trade” type of positions then? Questions to answer over time.

In Summary

• We have produced a new set of monthly indicators with ISDA to monitor clearing adoption and market structure trends in US Treasury repo markets.
• With the SEC clearing mandate approaching, the indicators allow market participants to benchmark their own clearing activity against broad market trends.
• Over time, the data should help answer the key questions: how quickly clearing adoption changes, which market segments drive the shift, and which participants are behind the growth.