Treasury Market Practices Group Releases Best Practice Recommendations for U.S. Treasury Repo Risk Management 

The Treasury Market Practices Group (TMPG) today updated the existing Best Practices for Treasury, Agency Debt, and Agency Mortgaged-Backed Securities Markets by incorporating recommendations for U.S. Treasury repo risk management, following a public comment process. Among other practices, the TMPG recommends that, consistent with appropriate risk management of counterparty exposures, all Treasury repurchase agreements (repos) should be prudently risk managed. This includes the application of haircuts (or margin) on the value of the securities, in concert with other risk management techniques, as appropriate. The TMPG believes these updates will provide guidance to market participants and promote the integrity and efficiency of TMPG covered markets. The TMPG has also released a set of Frequently Asked Questions (FAQs): Treasury Repurchase Agreement Risk Management that provide further guidance on the best practice recommendations and a final version of its white paper Non-Centrally Cleared Bilateral Repo and Indirect Clearing in the U.S. Treasury Market: Focus on Margining Practices, that helped inform the best practice guidance for U.S. Treasury repo risk management.

Treasury Market Practices Group Releases Best Practice Recommendations for U.S. Treasury Repo Risk Management May 22, 2025

White Paper: Non-Centrally Cleared Bilateral Repo and Indirect Clearing in the U.S. Treasury Market: Focus on Margining Practices May 22, 2025

Treasury Market Practices Group (TMPG) Finalizes its Recommended Best Practices for Treasury Repo Risk Management May 22, 2025

Frequently Asked Questions (FAQs): Treasury Repurchase Agreement Risk Management May 22, 2025

Best Practices for Treasury, Agency Debt, and Agency Mortgage-Backed Securities Markets May 22, 2025

Treasury Market Practices Group Seeks Comment on Consultative White Paper and Proposed Best Practice Recommendations for U.S. Treasury Repo Risk Management

The Treasury Market Practices Group (TMPG) today released a consultative white paper Non-Centrally Cleared Bilateral Repo and Indirect Clearing in U.S. Treasury Market: Focus on Margining Practices. The white paper identifies several risks posed by current risk management practices in the U.S. Treasury repurchase agreement (repo) market. In light of these risks, the TMPG is proposing updates to its existing Best Practices for Treasury, Agency Debt, and Agency Mortgage-Backed Securities Markets, including recommending that, consistent with appropriate risk management of counterparty exposures, all Treasury repo should include prudent haircuts (or margin) on the value of the securities, in concert with other risk management techniques. The TMPG also released a proposed set of Frequently Asked Questions (FAQs) to provide further guidance on the recommended proposed best practices. The TMPG seeks comment on this material by April 30, 2025.

TMPG Seeks Comment on Consultative White Paper and Proposed Best Practice Recommendations for U.S. Treasury Repo Risk Management February 26, 2025

Consultative White Paper: Non-Centrally Cleared Bilateral Repo and Indirect Clearing in the U.S. Treasury Market: Focus on Margining Practices February 26, 2025

TMPG Proposed Recommended Best Practices on Treasury Repo Risk Management February 26, 2025

Proposed Frequently Asked Questions (FAQs): Treasury Repurchase Agreement Risk Management February 26, 2025