CME Group, the world's leading derivatives market, and The Depository Trust & Clearing Corporation (DTCC), the leading post-trade market infrastructure for the global financial services industry, announced that their expanded cross-margining agreement has been approved by the Securities and Exchange Commission ( SEC) was approved. and Commodity Futures Trading Commission (CFTC) approvals. The agreement will enable capital efficiency for clearing members trading and clearing both U.S. Treasuries and CME Group interest rate futures and is expected to launch in January 2024.
The new cross-margining agreement will allow eligible clearing members of CME and the Government Securities Division (GSD) of DTCC's Fixed Income Clearing Corporation (FICC) to cross-margin an expanded range of products, including CME Group SOFR futures and Ultra 10-Year, to utilize U.S. Treasury Futures and Ultra U.S. Treasury Futures as well as FICC-approved U.S. Treasury Notes and Bonds. Repo transactions involving treasury collateral with a remaining maturity of more than one year are also eligible for the expanded cross-margining arrangement.
“Consistent with our long-standing commitment to providing capital efficiency to market participants, we are excited to bring this enhanced cross-margining protocol to the Treasury market in January,” said Suzanne Sprague, Global Head of Clearing and Post-Trade Services the CME Group. “We welcome the opportunity to further expand our collaboration with DTCC for the benefit of market participants trading in spot and futures markets.”
“We are pleased to have received regulatory approval of our expanded cross-margining agreement,” said Laura Klimpel, General Manager of Fixed Income Clearing Corporation (FICC) and Head of SIFMU Business Development at DTCC. “Approval of the agreement paves the way for greater efficiency and resilience across the U.S. Treasury market, and we look forward to working with CME Group to implement these important improvements.”
Source: CME
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