DTCC and CME Group receive regulatory approvals
16 April 2026 US
Image: Nataliya/stock.adobe.com
The Depository Trust & Clearing Corporation (DTCC), and CME Group, have received approvals for an expanded cross-margining arrangement, from the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The arrangement is designed to create additional capital efficiencies for market participants.
Beginning 30 April, end-user clients of dually-registered broker-dealers and futures commission merchants (FCMs) — that are common members of both the CME and Fixed Income Clearing Corporation (FICC) — will be able to access the benefits of cross-margining.
Clients can benefit from increased capital and margin efficiencies when clearing transactions in US Treasury securities through FICC, and interest rate futures through CME when those transactions have offsetting risk exposures.
Clients active in trading US Treasury and interest rate derivatives will be able to offset eligible positions across both clearing houses, reducing margin requirements, freeing up capital, and improving liquidity.
Frank La Salla, president and CEO at DTCC, states: “The importance of efficient cross-margining opportunities across US Treasury securities and futures activity is critical as centrally cleared US Treasury activity continues to grow.
“Our current cross-margining arrangement with CME Group has a proven track record of creating an average of US$1 billion across both clearing houses in risk offsets every day, and we expect the end-user cross-margin effort will lead to additional offsets for the industry.
“We are delivering meaningful margin and capital efficiency benefits for end-user clients, while helping our members support more effective risk management across cash US Treasuries and interest rate futures.”
Terry Duffy, CME Group chairman and CEO, adds:
“With the SEC's central clearing mandates now taking effect, cross-margining is essential — not only for operational efficiency, but to help end users manage the real costs of compliance.
“Decades of collaboration between our two organisations and regulators have laid the groundwork, and now our partnership will deliver additional margin and capital efficiencies across the marketplace.”
CME-FICC cross-margining arrangements have been available to common clearing members with respect to their proprietary accounts since 2004, with significant enhancements to the arrangement announced in 2024.
This latest expansion will now enable clearing members to extend equivalent margining benefits to their clients.
Under the arrangement, FICC will designate cross-margin accounts, allowing all eligible positions in the account to offset with eligible CME Group interest rate futures.
CME Clearing allows participants to direct futures to end-user cross-margin accounts throughout the day, making them available for offset in the cross-margin arrangement.
The arrangement is designed to create additional capital efficiencies for market participants.
Beginning 30 April, end-user clients of dually-registered broker-dealers and futures commission merchants (FCMs) — that are common members of both the CME and Fixed Income Clearing Corporation (FICC) — will be able to access the benefits of cross-margining.
Clients can benefit from increased capital and margin efficiencies when clearing transactions in US Treasury securities through FICC, and interest rate futures through CME when those transactions have offsetting risk exposures.
Clients active in trading US Treasury and interest rate derivatives will be able to offset eligible positions across both clearing houses, reducing margin requirements, freeing up capital, and improving liquidity.
Frank La Salla, president and CEO at DTCC, states: “The importance of efficient cross-margining opportunities across US Treasury securities and futures activity is critical as centrally cleared US Treasury activity continues to grow.
“Our current cross-margining arrangement with CME Group has a proven track record of creating an average of US$1 billion across both clearing houses in risk offsets every day, and we expect the end-user cross-margin effort will lead to additional offsets for the industry.
“We are delivering meaningful margin and capital efficiency benefits for end-user clients, while helping our members support more effective risk management across cash US Treasuries and interest rate futures.”
Terry Duffy, CME Group chairman and CEO, adds:
“With the SEC's central clearing mandates now taking effect, cross-margining is essential — not only for operational efficiency, but to help end users manage the real costs of compliance.
“Decades of collaboration between our two organisations and regulators have laid the groundwork, and now our partnership will deliver additional margin and capital efficiencies across the marketplace.”
CME-FICC cross-margining arrangements have been available to common clearing members with respect to their proprietary accounts since 2004, with significant enhancements to the arrangement announced in 2024.
This latest expansion will now enable clearing members to extend equivalent margining benefits to their clients.
Under the arrangement, FICC will designate cross-margin accounts, allowing all eligible positions in the account to offset with eligible CME Group interest rate futures.
CME Clearing allows participants to direct futures to end-user cross-margin accounts throughout the day, making them available for offset in the cross-margin arrangement.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
