ISDA Backs ICC’s Bid to Register as Clearing Agency for U.S. Treasuries

The International Swaps and Derivatives Association (ISDA) has thrown its weight behind ICE Clear Credit's application to register as a clearing agency for U.S. Treasury transactions. In a letter to the SEC dated October 6, ISDA endorsed ICC's proposed framework, arguing it WOULD foster competition and resilience in the Treasury market.

The MOVE comes as market participants prepare for the SEC's clearing mandate, which is expected to increase demand for robust clearing solutions. ISDA's support is contingent on improvements to ICC's clearing model, though specifics weren't disclosed.

Approval would mark a significant step in modernizing Treasury market infrastructure, potentially creating new hedging opportunities for institutional investors. The development underscores growing institutional interest in regulated financial infrastructure - a trend that could indirectly benefit crypto markets as traditional and digital asset ecosystems converge.