CME Group and DTCC to Enhance Existing Cross-Margining Arrangement, Extending Benefits to End Users in December 2025

Core Viewpoint - CME Group and DTCC are expanding their cross-margining arrangement to enhance margin savings and capital efficiencies for end users by December 2025 [1][2]. Group 1: Cross-Margining Arrangement - The proposed enhancement will allow eligible end user clients at CME Group and DTCC's Fixed Income Clearing Corporation to access capital efficiencies when trading U.S. Treasury securities and CME Group interest rate futures with offsetting risk exposures [2][3]. - Clients must use the same dually registered Futures Commission Merchant and broker/dealer at both CCPs to participate in end-user cross margining [2][3]. - The arrangement aims to encourage greater utilization of central clearing, thereby reducing systemic risk in the market [2][3]. Group 2: Benefits and Goals - The collaboration between CME Group and DTCC focuses on extending cross-margin benefits to more customer accounts and potentially to other products, enhancing efficiency, cost reduction, liquidity, and risk management in U.S. Treasury markets [3]. - The arrangement will designate cross-margin accounts, allowing eligible positions to offset with CME Group interest rate futures, and participants can direct futures to these accounts throughout the day [3]. Group 3: Company Background - CME Group is the leading derivatives marketplace, enabling clients to trade various financial instruments and manage risk effectively [4]. - DTCC, with over 50 years of experience, serves as the premier post-trade market infrastructure, automating and standardizing financial transaction processing to enhance efficiency and transparency [6][7]. - In 2023, DTCC processed securities transactions valued at U.S. $3 quadrillion and provided custody for securities valued at U.S.$85 trillion [7].