Lara Klimpel, the managing director who oversees the Fixed Income Clearing Corporation at DTCC, told a House task force that FICC has upgraded access models, separated house and customer activity, and created segregated customer margin accounts to support the SEC’s expansion of central clearing in the Treasury market.

Klimpel said the SEC finalized the clearing rule in December 2023 and extended industry implementation timelines; mandatory clearing is scheduled to begin for cash transactions on Dec. 31, 2026, and for repo transactions on June 30, 2027. She told members FICC routinely clears more than $11 trillion per day and noted an all‑time single‑day peak of $13.2 trillion during recent volatility.

Klimpel identified two open industry issues she said require regulatory attention: the scope and contours of the inter‑affiliate exemption from the clearing requirement, and concerns about “double‑margining” that FICC has proposed to address with rule changes and with a cross‑margining arrangement with CME Group. She said end‑user cross‑margining would improve margin efficiency for clients whose futures are cleared at CME and cash/repo positions at FICC, thereby smoothing migration into central clearing.

On readiness, Klimpel said FICC launched access‑model and risk‑management changes and is committed to working with clients and supervisors to implement required changes before the deadlines. She added that resolving inter‑affiliate scope and finalizing proposed rule filings will be important for some market participants as they prepare to migrate remaining balances into clearing in 2026–2027.

The committee pressed for clarity on inter‑affiliate rules and the practical effects of cross‑margining for end users; Klimpel said those issues remain under industry and regulator discussion.