- Enhancements to long-standing cross-margining agreement
will launch in January 2024, pending
regulatory approval
- Clearing members will be eligible to gain greater margin
efficiencies between U.S. Treasury securities and CME Group
Interest Rate futures
CHICAGO, NEW
YORK, LONDON, HONG KONG, SINGAPORE, SYDNEY, July 18,
2023 /PRNewswire/ -- CME Group, the world's
leading derivatives marketplace, and The Depository Trust &
Clearing Corporation (DTCC), the premier post-trade market
infrastructure for the global financial services industry, today
announced enhancements to their existing cross-margining
arrangement that will increase capital efficiencies for clearing
members that trade and clear both U.S. Treasury securities and CME
Group Interest Rate futures.
The proposed changes, subject to regulatory approval, are
expected to launch in January 2024.
Through the enhanced agreement, clearing members of CME and the
Government Securities Division of DTCC's Fixed Income Clearing
Corporation (FICC) who are eligible to benefit from the program
today will be able 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. FICC-cleared U.S.
Treasury notes and bonds and Repo transactions that have a time to
maturity greater than one year will also be eligible.
"Today's announcement builds on 20 years of our organizations
working together to create efficiencies for Treasury market
participants," said Suzanne Sprague,
CME Group Global Head of Clearing and Post-Trade Services. "As
evidenced in the G30 report, cross-margining has been identified as
both a market benefit and a regulatory priority going forward. CME
Group is extremely pleased to expand on our collaboration with DTCC
to deliver greater opportunities for capital efficiencies for
participants who trade across cash and futures markets."
"FICC recognizes the importance of this joint effort, and we are
pleased to be working with CME Group to improve the efficiency and
resiliency of the overall Treasury market," said Laura Klimpel, General Manager of Fixed Income
Clearing Corporation (FICC) & Head of SIFMU Business
Development at DTCC.
Notes to Editor
To view the CME Group rule filing, click here. To view the DTCC
rule filing, click here.
About CME Group
As the world's leading derivatives
marketplace, CME Group (www.cmegroup.com) enables clients to trade
futures, options, cash and OTC markets, optimize portfolios, and
analyze data – empowering market participants worldwide to
efficiently manage risk and capture opportunities. CME Group
exchanges offer the widest range of global benchmark products
across all major asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural products and
metals. The company offers futures and options on futures
trading through the CME Globex platform, fixed income trading
via BrokerTec and foreign exchange trading on the EBS platform. In
addition, it operates one of the world's leading central
counterparty clearing providers, CME Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board of
Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe
LTD and EBS Group LTD, respectively. The S&P 500 Index is a
product of S&P Dow Jones Indices LLC ("S&P DJI").
"S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are
trademarks of Standard & Poor's Financial Services LLC; Dow
Jones®, DJIA® and Dow Jones Industrial Average are service and/or
trademarks of Dow Jones Trademark Holdings LLC. These trademarks
have been licensed for use by Chicago Mercantile Exchange Inc.
Futures contracts based on the S&P 500 Index are not sponsored,
endorsed, marketed, or promoted by S&P DJI, and S&P DJI
makes no representation regarding the advisability of investing in
such products. All other trademarks are the property of their
respective owners.
About DTCC
With 50 years of experience, DTCC is the premier post-trade
market infrastructure for the global financial services industry.
From 20 locations around the world, DTCC, through its subsidiaries,
automates, centralizes, and standardizes the processing of
financial transactions, mitigating risk, increasing transparency
and driving efficiency for thousands of broker/dealers, custodian
banks and asset managers. Industry owned and governed, the firm
simplifies the complexities of clearing, settlement, asset
servicing, data management, data reporting and information services
across asset classes, bringing increased security and soundness to
financial markets. In 2022, DTCC's subsidiaries processed
securities transactions valued at U.S. $2.5 quadrillion. Its depository provides custody
and asset servicing for securities issues from over 150 countries
and territories valued at U.S. $72
trillion. DTCC's Global Trade Repository service, through
locally registered, licensed, or approved trade repositories,
processes more than 17.5 billion messages annually. To learn more,
please visit us at www.dtcc.com or connect with us
on LinkedIn, Twitter, YouTube, Facebook, and
Instagram.
CME-G
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SOURCE CME Group