Hedge funds to get new SEC mandate

Gensler has argued that central clearing reduces risks and that trading by private funds is too opaque. — Bloomberg

NEW YORK: Hedge funds and brokerages have new requirements from the Securities and Exchange Commission (SEC) to centrally clear far more of their US Treasuries trades in a structural overhaul for the US$26 trillion market.

The SEC voted to require that all transactions involving repurchase agreements use clearinghouses, which sit between buyers and sellers to complete transactions.