DTCC and CME Group have received regulatory approval from the SEC and CFTC for
their enhanced cross-margining arrangement.
The arrangement will enable capital efficiencies for clearing members that trade and clear both US Treasury securities and CME Group Interest Rate futures. It is expected to launch in January 2024.
The new cross-margining arrangement will permit eligible clearing members of CME and the Government Securities Division of DTCC's Fixed Income Clearing Corporation (FICC) to cross-margin an expanded suite of products. The products include CME Group SOFR futures, Ultra 10-Year US Treasury Note futures and Ultra US Treasury Bond futures, as well as FICC-cleared US Treasury notes and bonds.
Repo transactions that have Treasury collateral, with a remaining time to maturity greater than one year, will also be eligible for the enhanced cross-margining arrangement.
Suzanne Sprague, global head of clearing and post-trade services at CME Group, says: “In line with our longstanding commitment to provide capital efficiencies to market users, we are very pleased to bring this enhanced cross-margining arrangement to the Treasury marketplace in January. We appreciate the opportunity to further our collaboration with DTCC for the benefit of market participants who trade across cash and futures markets."
Laura Klimpel, general manager of FICC and head of SIFMU business development at DTCC, comments: “We are pleased to have received regulatory approval of our enhanced cross-margining arrangement.
“The approval of the arrangement paves the way for increased efficiency and resiliency of the overall US Treasury Market, and we look forward to working with CME Group to deliver upon these important enhancements.”
