CME Group and DTCC enhance cross-margining arrangements
25 January 2024 US, UK, APAC
Image: Kiattisak/stock.adobe.com
CME Group and the Depository Trust & Clearing Corporation (DTCC) have gone live with their enhanced cross-margining arrangement.
The new feature enables capital efficiencies for clearing members that trade and clear both US Treasury securities and CME Group interest rate futures.
Eligible clearing members of CME Group and the Government Securities Division of DTCC’s Fixed Income Clearing Corporation (FICC) can now cross-margin an expanded suite of products.
These products include CME Group SOFR futures, Ultra 10-Year US Treasury Note futures and Ultra US Treasury Bond futures, with FICC-cleared US Treasury notes and bonds.
According to the firms, repo transactions that have Treasury collateral with more than one year remaining to maturity will also be eligible for the cross-margining arrangement.
Commenting on the release, Suzanne Sprague, CME Group global head of clearing and post-trade services, says: “We are continually seeking to make trading more efficient and cost effective for our clearing members.
“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.”
Laura Klimpel, general manager of FICC and head of SIFMU business development at DTCC, comments: “We are pleased to continue to collaborate with CME Group to deliver enhancements to our cross-margining arrangement, which will increase efficiency and enable capital savings opportunities for our members.
“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.”
The new feature enables capital efficiencies for clearing members that trade and clear both US Treasury securities and CME Group interest rate futures.
Eligible clearing members of CME Group and the Government Securities Division of DTCC’s Fixed Income Clearing Corporation (FICC) can now cross-margin an expanded suite of products.
These products include CME Group SOFR futures, Ultra 10-Year US Treasury Note futures and Ultra US Treasury Bond futures, with FICC-cleared US Treasury notes and bonds.
According to the firms, repo transactions that have Treasury collateral with more than one year remaining to maturity will also be eligible for the cross-margining arrangement.
Commenting on the release, Suzanne Sprague, CME Group global head of clearing and post-trade services, says: “We are continually seeking to make trading more efficient and cost effective for our clearing members.
“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.”
Laura Klimpel, general manager of FICC and head of SIFMU business development at DTCC, comments: “We are pleased to continue to collaborate with CME Group to deliver enhancements to our cross-margining arrangement, which will increase efficiency and enable capital savings opportunities for our members.
“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.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
