CME Group and The Depository Trust & Clearing Corporation (DTCC) have announced plans to expand their cross-margining arrangement, extending margin savings and capital efficiencies to end users by December 2025, subject to regulatory approval.

The enhancement will allow eligible end-user clients at CME Group and DTCC's Fixed Income Clearing Corporation (FICC) to access capital efficiencies when trading U.S. Treasury securities and CME Group interest rate futures with offsetting risk exposures. Clients will need to use the same dually registered Futures Commission Merchant (FCM) and broker/dealer at both central counterparties to participate.

Laura Klimpel, Managing Director and Head of DTCC’s Fixed Income and Financing Solutions, highlighted that extending cross-margining benefits to more customer accounts would improve efficiency, reduce costs, enhance liquidity, and strengthen risk management in U.S. Treasury markets. Suzanne Sprague, CME Group’s Chief Operating Officer, emphasized the importance of this milestone in improving capital efficiency for market participants.

The proposed arrangement will designate cross-margin accounts at FICC, enabling eligible positions to offset with CME Group interest rate futures. CME Group will facilitate futures direction to end-user cross-margin accounts throughout the day for offsetting risk exposures.

Ahead of regulatory approvals, end users can establish new accounts, complete necessary legal documentation, and test end-to-end workflows.

Source: CME Group, "CME Group and DTCC to Enhance Existing Cross-Margining Arrangement," February 24, 2025.