CME Group and DTCC granted regulatory approval for cross-margining arrangement

CME Group and The Depository Trust & Clearing Corporation, or DTCC, a provider of post-trade market infrastructure for the global financial services industry, announced their enhanced cross-margining arrangement has received SEC and CFTC approvals. The arrangement will enable capital efficiencies for clearing members that trade and clear both U.S. Treasury securities and CME Group Interest Rate futures and is expected to launch in January 2024. The new cross-margining arrangement will permit eligible clearing members of CME and the Government Securities Division of DTCC’s Fixed Income Clearing Corporation to 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, and FICC-cleared U.S. Treasury notes and bonds. Repo transactions that have Treasury collateral with a remaining time to maturity greater than one year will also be eligible for the enhanced cross-margining arrangement.