CME Group and DTCC expand partnership
24 February 2024 US
Image: eurobanks/stock.adobe.com
CME Group and the Depository Trust and Clearing Corporation (DTCC) have expanded their existing cross-margining arrangement.
The arrangement will now provide increased margin savings and capital efficiencies to end users by December 2025. Clients of both CME Group and the Government Securities Division (GSD) of DTCC's Fixed Income Clearing Corporate (FICC) will now be able to access capital efficiencies that are available when trading US Treasury securities.
This is said to encourage greater usage of central clearing while reducing operational risk.
“Our ongoing collaboration with CME Group remains focused on extending cross-margin benefits to more customer accounts and eventually, to other products. Doing so will enable even greater efficiency, cost reduction, and increased risk management in the US Treasury markets," says Laura Klimpel, managing director and head of DTCC’s Fixed Income and Financing Solutions.
Suzanne Sprague, CME group chief operating officer and global head of clearing and post-trade services, adds: "Building on more than 20 years of partnership, we look forward to working with DTCC and regulators to deliver even greater benefits to both cash and futures market participants.”
The enhanced arrangement remains subject to regulatory approval.
The arrangement will now provide increased margin savings and capital efficiencies to end users by December 2025. Clients of both CME Group and the Government Securities Division (GSD) of DTCC's Fixed Income Clearing Corporate (FICC) will now be able to access capital efficiencies that are available when trading US Treasury securities.
This is said to encourage greater usage of central clearing while reducing operational risk.
“Our ongoing collaboration with CME Group remains focused on extending cross-margin benefits to more customer accounts and eventually, to other products. Doing so will enable even greater efficiency, cost reduction, and increased risk management in the US Treasury markets," says Laura Klimpel, managing director and head of DTCC’s Fixed Income and Financing Solutions.
Suzanne Sprague, CME group chief operating officer and global head of clearing and post-trade services, adds: "Building on more than 20 years of partnership, we look forward to working with DTCC and regulators to deliver even greater benefits to both cash and futures market participants.”
The enhanced arrangement remains subject to regulatory approval.
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