Order Granting Exemptive Relief, Pursuant to Sections 17A and 36(a) of the Securities Exchange Act of 1934, From the Definition of an “Eligible Secondary Market Transaction” in Rule 17ad-22(a)

Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Securities and Exchange Commission [Release No. 34-106789; File Nos. S7-2026-07 and S7-2026-11] ( printed page 69578) October 30, 2026. I. Introduction A. Background On December 13, 2023, the Securities and Exchange Commission (“Commission” or “SEC”) adopted amendments to Rule 17a9(a) and (e)(18)(iv)(A) and (B) under the Securities Exchange Act of 1934 (“Exchange Act”). [ 1 ] Under these amendments, covered clearing agencies that provide central counterparty services for U.S. Treasury securities (“U.S. Treasury securities CCAs”) must establish, implement, maintain, and enforce written policies and procedures reasonably designed to establish objective, risk-based, and publicly disclosed criteria for participation which require that any direct participant of a U.S. Treasury securities CCA submit for clearance and settlement all of the eligible secondary market transactions to which such direct participant is a counterparty, and identify and monitor the U.S. Treasury securities CCA's direct participants' submission of transactions for clearing as required under the amendments (together, the “Trade Submission Requirement”). [ 2 ] The amendments defined what constitutes an “eligible secondary market transaction” to include, among other things, a secondary market transaction in U.S. Treasury securities of a type accepted for clearing by a registered covered clearing agency that is a repurchase or reverse repurc…