International derivatives market The CME Group and The Depository Trust & Clearing Corporation (DTCC) today announced that enhanced cross-margin settlement has gone live, enabling capital efficiency for clearing members that trade and clear US Treasury securities and futures contracts. CME Group rate fulfillment.
With the new arrangement in place, eligible clearing members of CME Group and DTCC’s Fixed Income Clearing Corporation (FICC) Government Securities Division (GSD) can now cross-trade an expanded range of products, including CME Group SOFR futures , Ultra 10-Year US Treasury Futures and US Treasury Futures, with FICC-cleared US Treasuries and Treasuries. Treasury-backed repurchase transactions with more than one year remaining to maturity will also be eligible for the enhanced cross-margin arrangement.
“We are constantly striving to make trading more efficient and cost-effective for our clearing members,” said Suzanne Sprague, CME Group’s Global Head of Clearing and Post-Trade Services. “Increasing capital efficiency for our clearing members who trade both cash and futures, this new Treasury cross-margin agreement with DTCC builds on the benefits provided by our 20-year partnership and will contribute to an even more effective US Treasury market. the most important, actively traded markets in the world.”
“We are pleased to continue working with CME Group to deliver improvements to the cross-margin agreement that will increase efficiency and provide capital-saving opportunities for our members,” said Laura Klimpel, Chief Executive Officer of the Fixed Income Clearing Corporation. (FICC) & Head. of SIFMU Business Development at DTCC. “The importance of effective cross-margining opportunities between Treasuries and futures activity is even more important given the increase in Treasury activity that will need to be cleared centrally. We look forward to continuing to advance our offerings and capabilities to continue to deliver added value to the industry.”