International Painvatives’ CME Group has announced today that it has deposited with CFTC to expand the existing cross -signing agreement with Dospitory Trust & Clearing Corporation (DTCC), the leading market infrastructure for the global financial service industry.
DTCC plans to make a similar deposit to its regulator, the Securities and Exchange Commission (SEC) in the near future. Together, businesses intend to allow the possibilities of crossing importance needed to provide increased savings of margins and capital efficiency to final users customers by December 2025, without prejudice to regulatory regulation.
The proposed improvement will allow eligible customers of final users with positions in the CME Group and the DTCC Department of Government Capital Market (GSD) for fixed income (FICC) to benefit from capital trading in US treasures and future CMEs.
To participate in end user cross margining, customers will need to use the same Dual-Registeeded Futures Commission Merchant (registered in CFTC) and a broker/dealer (registered in SEC) in both clearances. According to the new arrangement, final users customers could choose to have positions on CME Group’s eligible products and places in FICC eligible products that are transferred to a cross -care account and marginalized based on the combined risk presented by these positions.