New York – CME Group (NASDAQ: CME) and The Depository Trust & Clearing Corp. (DTCC) have announced plans to extend their cross-margining arrangement to end users by December 2025, a move expected to enhance margin savings and capital efficiencies for market participants.
Under the proposed expansion, DTCC’s Fixed Income Clearing Corp. (FICC) will designate cross-margin accounts, allowing eligible positions to offset with CME Group’s interest rate futures. The initiative, subject to regulatory approval, aims to provide end users at CME Group and the Government Securities Division (GSD) of FICC with greater access to capital efficiencies when trading U.S. Treasury securities and CME Group interest rate futures that have offsetting risk exposures.
To participate in the expanded cross-margining program, clients must utilize the same dually registered Futures Commission Merchant and broker/dealer, as required by the SEC, at both counterparty clearing providers. “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, therefore reducing systemic risk,” CME Group and DTCC stated.
While awaiting regulatory approval, end users can begin preparing by setting up new accounts, completing required legal documentation, and testing end-to-end workflows to ensure a smooth transition. This expansion is expected to significantly enhance liquidity and risk management for market participants engaging in Treasury securities and futures trading.
