CME Group and DTCC’s cross-margining arrangement approved by SEC and CFTC

CME Group (CME) and the Depository Trust & Clearing Corporation, or DTCC, a post-trade market infrastructure for the global financial services industry, announced that their expanded cross-margining arrangement, designed to create additional capital efficiencies for market participants, has received regulatory approvals from the SEC and the Commodity Futures Trading Commission, or CFTC. Beginning April 30, DTCC and CME Group will extend the benefits of cross-margining to end-user clients of dually registered broker/dealers and futures commission merchants – FCMs – that are common members of both the DTCC’s Fixed Income Clearing Corporation, or FICC, and CME. Clients can benefit from increased capital and margin efficiencies when clearing transactions in U.S. Treasury securities through FICC and interest rate futures through CME when those transactions have offsetting risk exposures. CME-FICC cross-margining arrangements have been available to common clearing members with respect to their proprietary accounts since 2004, with significant enhancements to the arrangement announced in 2024. This latest expansion will now enable clearing members to extend equivalent margining benefits to their clients. CME Clearing allows participants to direct futures to end-user cross-margin accounts throughout the day, thereby making them available for offset in the cross-margin arrangement.