The duo is aiming for greater efficiencies across Treasury securities and CME futures.
Derivatives exchanges company CME Group and the Depository Trust & Clearing Corp. (DTCC) have gone live with their enhanced cross-margining arrangement, intended to facilitate capital efficiencies for “clearing members that trade and clear both U.S. Treasury securities and CME Group Interest Rate futures.”
“With the new arrangement implemented, eligible clearing members of CME Group and the Government Securities Division (GSD) of DTCC’s Fixed Income Clearing Corp. (FICC) can now cross-margin an expanded suite of products, including CME Group SOFR futures, Ultra 10-Year U.S. Treasury Note futures and Ultra U.S. Treasury Bond futures, with FICC-cleared U.S. Treasury notes and bonds,” officials say.
“Repo transactions that have Treasury collateral with more than one year remaining to maturity will also be eligible for the enhanced cross-margining arrangement,” officials add.
The new arrangement with DTCC “builds on the benefits provided through our 20-year partnership and will contribute to an even more efficient U.S. Treasury marketplace, one of the most important, actively traded markets in the world,” says Suzanne Sprague, CME Group global head of clearing and post-trade services, in a prepared statement. “
“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,” says Laura Klimpel, general manager at FICC and head of SIFMU business development at DTCC, in a statement.
