The duo is working to expand their long-standing cross-margining arrangement.
CME Group and the Depository Trust and Clearing Corp. (DTCC) have been working behind the scenes to expand their cross-margining agreement to increase margin savings and capital efficiencies for traders by December 2025, officials say.
The update, which is still pending the nod from regulators, aims to improve the long-standing CME-DTCC cross-margining arrangement by allowing clients to access greater capital efficiencies when trading U.S. Treasury securities and CME interest rate futures with offsetting risk positions.
To participate in the enhanced offering, clients must use the same dually registered futures commission merchant (FCM) and SEC-registered broker/dealer at both central counterparties (CCPs).
DTCC calls the agreement a “critical step” toward efficiency, cost reduction, and improved risk management in U.S. Treasury markets. CME describes it as an “important milestone,” reinforcing updated U.S. Treasury clearing regulations designed to promote central clearing and minimize systemic risk.
The Fixed Income Clearing Corp. (FICC) a subsidiary of the DTCC, that focuses on clearing and settling transactions in the fixed income market, will oversee cross-margin accounts, ensuring eligible positions offset with CME interest rate futures.
With regulatory approval expected, end-users are being encouraged to begin setting up new accounts, completing legal documentation, and testing their workflows, officials add.
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