CHICAGO and NEW
YORK and LONDON and
HONG KONG and SINGAPORE and SYDNEY, Sept. 12,
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 their
enhanced cross-margining arrangement has received Securities and
Exchange Commission (SEC) and Commodity Futures Trading Commission
(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
(GSD) of DTCC's Fixed Income Clearing Corporation (FICC) 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.
"In line with our longstanding commitment to provide capital
efficiencies to market users, we are very pleased to bring this
enhanced cross-margining arrangement to the Treasury marketplace in
January," said Suzanne Sprague, CME Group Global Head of
Clearing and Post-Trade Services. "We appreciate the opportunity to
further our collaboration with DTCC for the benefit of market
participants who trade across cash and futures markets."
"We are pleased to have received regulatory approval of our
enhanced cross-margining arrangement," said Laura Klimpel,
General Manager of Fixed Income Clearing Corporation (FICC) &
Head of SIFMU Business Development at DTCC. "The approval of the
arrangement paves the way for increased efficiency and
resiliency of the overall U.S. Treasury Market, and we look forward
to working with CME Group to deliver upon these important
enhancements."
Notes to Editor
To view the CME Group rule filing,
click here. To view the FICC 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, enhancing performance and driving
efficiency for thousands of broker/dealers, custodian banks and
asset managers. Industry owned and governed, the firm innovates
purposefully, simplifying the complexities of clearing, settlement,
asset servicing, transaction processing, trade reporting and data
services across asset classes and bringing increased security,
enhanced resilience and soundness to financial markets. In 2022,
DTCC's subsidiaries processed securities transactions valued at
U.S. $2.5 quadrillion and its
depository subsidiary provided 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,
X, YouTube, Facebook, and Instagram.
CME-G
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content:https://www.prnewswire.com/news-releases/cme-group-and-dtcc-receive-regulatory-approval-for-enhanced-treasury-cross-margining-arrangement-launching-january-2024-301924497.html
SOURCE CME Group