CHICAGO and NEW
YORK and LONDON and
HONG KONG and SINGAPORE and SYDNEY, Jan. 23,
2024 /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 gone live, enabling
capital efficiencies for clearing members that trade and clear both
U.S. Treasury securities and CME Group Interest Rate futures.
With the new arrangement implemented, eligible clearing members
of CME Group and the Government Securities Division (GSD) of
DTCC's Fixed Income Clearing Corporation (FICC) can now
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, with FICC-cleared U.S. Treasury notes
and bonds. Repo transactions that have Treasury collateral with
more than one year remaining to maturity will also be eligible for
the enhanced cross-margining arrangement.
"We are continually seeking to make trading more efficient and
cost effective for our clearing members," said Suzanne Sprague, CME Group Global Head of
Clearing and Post-Trade Services. "By increasing capital
efficiencies for our clearing members who trade both cash and
futures, this new Treasury cross-margining arrangement with DTCC
builds on the benefits provided through our 20-year partnership and
will contribute to an even more efficient U.S. Treasury
marketplace, one of the most important, actively traded markets in
the world."
"We welcome the efforts by CME Group and FICC to improve the
efficiency and resiliency of the overall Treasury market with this
enhanced cross-margining arrangement," said Mark Wendland, Chief Operating Officer and
Partner at DRW.
"We are pleased to continue to collaborate with CME Group
to deliver enhancements to our cross-margining arrangement which
will increase efficiency and enable capital savings opportunities
for our members," said Laura
Klimpel, General Manager of Fixed Income Clearing
Corporation (FICC) & Head of SIFMU Business Development at
DTCC. "The importance of efficient cross-margining opportunities
across Treasury securities and futures activity is even more
significant based on the increase in Treasury activity that will be
required to be centrally cleared. We look forward to continuing to
advance our offerings and capabilities to continue to deliver
additional value to the industry."
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 is a trademark of
BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. 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-launch-enhanced-treasury-cross-margining-arrangement-enabling-capital-efficiencies-for-clearing-members-302041608.html
SOURCE CME Group