CME, DTCC, Live with Cross Margining Service

CME Group and DTCC say that their enhanced cross-margining arrangement has gone live, enabling capital efficiencies for clearing members that trade and clear both US Treasury securities and CME interest rate futures.

With the new arrangement implemented, eligible clearing members of CME and the Government Securities Division (GSD) of DTCC’s Fixed Income Clearing Corporation (FICC) can now cross-margin an expanded suite of products, including CME’s SOFR futures, Ultra 10-Year US Treasury Note futures and Ultra US Treasury Bond futures, with FICC-cleared US Treasury notes and bonds. Repo transactions that have Treasury collateral with more than one year remaining to maturity will also be eligible for the enhanced cross-margining arrangement, the firms say.

“We are continually seeking to make trading more efficient and cost effective for our clearing members,” says Suzanne Sprague, CME Group global head of clearing and post-trade services. “By increasing capital efficiencies for our clearing members who trade both cash and futures, this new Treasury cross-margining arrangement with DTCC builds on the benefits provided through our 20-year partnership and will contribute to an even more efficient US Treasury marketplace, one of the most important, actively traded markets in the world.”

Laura Klimpel, general manager of FICC and head of SIFMU business development at DTCC, adds, “The importance of efficient cross-margining opportunities across Treasury securities and futures activity is even more significant based on the increase in Treasury activity that will be required to be centrally cleared. We look forward to continuing to advance our offerings and capabilities to continue to deliver additional value to the industry.”