CME Group and DTCC to enhance existing cross-margining arrangement

CME Group (CME) and The Depository Trust & Clearing Corporation, or DTCC, a post-trade market infrastructure for the global financial services industry, 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 CME-DTCC cross-margining arrangement will allow eligible end user clients at CME Group and the Government Securities Division of DTCC’s Fixed Income Clearing Corporation to access capital efficiencies that are available when trading U.S. Treasury securities and CME Group interest rate futures that have offsetting risk exposures. 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. Under the proposed arrangement, FICC will designate cross-margin accounts, allowing all eligible positions in the account to offset with eligible CME Group interest rate futures. CME Group will allow participants to direct futures to end-user cross-margin accounts throughout the day, thereby making them available for offset in the cross-margin arrangement.