CME Group Files to Expand FICC Cross-Margining to End User Clients

Rhea-AI Summary

CME Group (NYSE:CME), the world's leading derivatives marketplace, has filed with the CFTC to expand its cross-margining agreement with The Depository Trust & Clearing Corporation (DTCC). The enhancement, expected to be implemented by December 2025 pending regulatory approval, will allow eligible end-user clients to benefit from capital efficiencies when trading U.S. Treasury securities and CME Group interest rate futures with offsetting risk exposures.

To participate, clients must use the same dually-registered Futures Commission Merchant and broker/dealer at both clearinghouses. The arrangement will enable clients to have positions in eligible products at both CME Group and FICC's Government Securities Division carried in a cross-margining account, with margin requirements based on combined risk exposure.

Positive

• Enhanced capital efficiency through cross-margining capabilities for end-user clients
• Potential margin savings for clients with offsetting risk exposures
• Streamlined risk management across U.S. Treasury securities and interest rate futures

Negative

• Implementation subject to regulatory approval from both CFTC and SEC
• Limited to clients using specific dually-registered brokers

NEW YORK and LONDON and HONG KONG and SINGAPORE and SYDNEY, Sept. 29, 2025/PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it has filed with the CFTC to expand its existing cross-margining agreement with The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry.

DTCC plans to make a similar filing with its regulator, the SEC, in the near future. Together, the firms intend to enable the cross-margining capabilities needed to provide increased margin savings and capital efficiencies to end user clients by December 2025, subject to regulatory approval.

The proposed enhancement will enable eligible end user clients with positions at CME Group and the Government Securities Division (GSD) of DTCC's Fixed Income Clearing Corporation (FICC) to benefit from capital efficiencies when trading U.S. Treasury securities and CME Group interest rate futures that have offsetting risk exposures.

As previously announced, to participate in end-user cross-margining, clients will need to use the same dually-registered Futures Commission Merchant (registered with the CFTC) and broker/dealer (registered with the SEC) at both clearinghouses. Under the new arrangement, end user clients could elect to have positions in eligible products at CME Group and positions in eligible products at FICC carried in a cross-margining account and margined based on the combined risk presented by those positions.

For more information on the CME Group FICC Cross-Margining arrangement expansion,  please visit 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 over 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, bringing enhanced resilience and soundness to existing financial markets while advancing the digital asset ecosystem. In 2024, DTCC's subsidiaries processed securities transactions valued at U.S. $3.7 quadrillion and its depository subsidiary provided custody and asset servicing for securities issues from over 150 countries and territories valued at U.S. $99 trillion. DTCC's Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes more than 25 billion messages annually. To learn more, please visit us at  www.dtcc.com  or connect with us on  LinkedIn ,  X ,  YouTube ,  Facebook and  Instagram .

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SOURCE CME Group

FAQ

When will CME Group's expanded FICC cross-margining program be implemented?

The program is expected to be implemented by December 2025, subject to regulatory approval from both the CFTC and SEC.

What are the requirements for clients to participate in CME Group's cross-margining program?

Clients must use the same dually-registered Futures Commission Merchant (CFTC-registered) and broker/dealer (SEC-registered) at both clearinghouses.

What benefits does CME Group's expanded cross-margining program offer to clients?

The program offers increased margin savings and capital efficiencies for clients trading U.S. Treasury securities and CME Group interest rate futures with offsetting risk exposures.

How does CME Group's cross-margining program work with DTCC's FICC?

Eligible positions at both CME Group and FICC's Government Securities Division can be carried in a cross-margining account, with margins calculated based on the combined risk of these positions.