CME Group and The Depository Trust & Clearing Corporation (DTCC) confirmed plans to expand their existing cross-margining arrangement to provide increased margin savings and capital efficiencies to end users by December 2025. This proposed enhancement to the long-standing collaboration aims to benefit a broader range of market participants. It is subject to regulatory approval.
The enhanced arrangement will allow eligible end-user clients at CME Group and DTCC's Fixed Income Clearing Corporation (FICC) to access capital efficiencies. These efficiencies are available when trading U.S. Treasury securities and CME Group interest rate futures that have offsetting risk exposures. Clients will need to leverage the same dually registered Futures Commission Merchant (FCM) and broker/dealer at both CCPs.
Aligning enhanced cross-margining for end-user customers with the regulatory timeline for expanded U.S. Treasury Clearing requirements encourages greater utilization of central clearing. This, in turn, reduces systemic risk across the U.S. Treasury markets. This initiative builds on over 20 years of partnership, aiming to deliver even greater benefits to both cash and futures market participants.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.