A new study from Acuiti, in collaboration with FIS, points to a growing appetite for self-clearing among buy-side and proprietary trading firms. The shift comes as the US Securities and Exchange Commission’s upcoming Treasury clearing mandate looms, forcing many firms to reassess their clearing models.
The SEC has set 31 December 2026 as the deadline for cash market transactions to be centrally cleared, with repos following on 30 June 2027. According to the study, this timetable is a key driver behind the interest in self-clearing. Half of the firms considering becoming a direct clearing member said the mandate and associated cross-margining schemes were central to their decision, while another quarter saw them as an important factor.
Moving in-house
The survey found that 44 percent of respondents were open to exploring or adopting self-clearing, while 12 percent had already taken the step of becoming an individual clearing member. Cost reduction, competitive advantage and operational efficiency were also cited as motivations. At the same time, firms acknowledged the challenge of navigating regulatory requirements.
Ross Lancaster, head of research at Acuiti, said the mandate is likely to accelerate the trend over the next five years, though the number of exchanges on which firms self-clear will remain limited. He also pointed to the role of technology, with Business-Process-as-a-Service (BPaaS) solutions potentially lowering barriers to entry.
Margin management
The report highlights a parallel trend of buy-side firms seeking greater control over margin processes. Nearly 70 percent of respondents said they had increased their authority over margin calculation and payment, with another 10 percent planning to do so. The study links this development to the growing sophistication and transparency of margin analysis tools, as well as the need to better manage volatility-driven spikes in margin calls.
The findings are based on a survey and interviews with 64 senior executives from buy-side and proprietary trading firms.
