CME Group and DTCC to Expand Existing Cross-Margining Arrangement

CME Group and The Depository Trust & Clearing Corporation (DTCC) announced plans on Monday to expand their existing cross-margining arrangement. 

The companies aim to provide greater margin savings and capital efficiencies for end users by December 2025.

Subject to regulatory approval, CME explained that the enhancement will enable eligible end-user clients at CME Group and the Government Securities Division (GSD) of DTCC’s Fixed Income Clearing Corporation (FICC) to access capital efficiencies when trading U.S. Treasury securities and CME Group interest rate futures with offsetting risk exposures.

They added that to participate, clients must use the same dually registered Futures Commission Merchant (FCM) and broker/dealer at both central counterparties (CCPs). 

The move is said to align with expanded U.S. Treasury Clearing requirements, promoting greater use of central clearing and reducing systemic risk.

“Bringing the benefits of cross-margining to the end-user is a critical step in enhancing capital efficiencies across U.S. Treasury market participants,” said Laura Klimpel, Managing Director at DTCC. 

She added that the collaboration with CME Group aims to extend cross-margin benefits to more customer accounts and additional products.

CME Group’s Chief Operating Officer Suzanne Sprague called the initiative “an important milestone” in making U.S. Treasury markets more efficient.

The firms said that ahead of regulatory approvals, end users can begin setting up new accounts, completing legal documentation, and testing workflows to prepare for participation in the expanded program.

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