The SEC’s repo clearing mandate will shift $2.8T by 2026.

This isn’t just a regulatory tweak. It’s a structural reset.

Dealers, asset managers, and banks must adapt fast.

The hidden costs of bilateral trades erase their spread advantage.

Balance sheet drag, SA-CCR capital charges, and NSFR costs push uncleared repos 8–12bps above cleared repo pricing.

Yet 74% of bilateral trades still have zero haircuts.

Winners, losers, and new opportunities:

• Dealers face $12–18B in new costs but gain $30B+ in netting benefits.
• Asset managers must offset 3–5bps of yield erosion.
• CCPs are scaling fast—FICC repo capacity is tripling to $3T.

What firms must do now:

• Run a true cost analysis—bilateral vs. cleared repo.
• Redesign liquidity buffers—shift to CCP-preferred collateral.
• Reengineer funding chains—map repo counterparties to clearing status.
• Stress test CCP dependencies—model default scenarios.
• Hedge the transition—use cleared/bilateral basis swaps.

By 2028, repo trading will be unrecognisable.

AI execution, tokenised Treasuries, global clearing arbitrage.

Firms treating this as a compliance box to check will fall behind.

Full breakdown in my latest blog post—link in comments below.

Repost to help others prepare.