ISDA Publishes Brattle-Prepared Summary Report on US Treasury Clearing

The International Swaps and Derivatives Association (ISDA) recently published a Brattle-prepared report summarizing the results of ISDA’s 2022 US Treasury Clearing Survey.

Prompted by discussions among policymakers and market participants about how to strengthen the resiliency of the US Treasury (UST) market, the survey was designed to gather feedback on the legal, operational, regulatory, and policy issues associated with the clearing of UST securities and repos. Various market participants – including dealers, asset managers, and brokers – were asked about their views on additional central clearing, including potential benefits and concerns. While most respondents were generally supportive of clearing, opinions varied based on the different types of respondents, suggesting additional research on the costs and benefits of additional clearing is warranted.

The report is the latest in a series of Brattle-prepared reports for ISDA as the private trade organization continues to help guide the transition away from the London Interbank Offered Rate (LIBOR) and solicits information from market participants about emerging areas of market and regulatory interest. The current report was supported by a Brattle team including Principals Ioannis Gkatzimas and Torben Voetmann, Senior Associate Nguyet Nguyen, and Associate Jacob Pastor.

See the full report, “Summary of Responses to the 2022 ISDA UST Survey,” below.