CME Group has unveiled an advanced cross-margining arrangement with the Depository Trust & Clearing Corporation (DTCC), a move that is set to unlock capital efficiencies for clearing members involved in U.S. Treasury securities and CME Group Interest Rate futures trading. The new development is now live, extending these efficiencies to market participants.

According to the details of this initiative, eligible clearing members from both CME Group and DTCC's Fixed Income Clearing Corporation (FICC) Government Securities Division (GSD) can now cross-margin an expanded suite of products. This expansion includes CME Group SOFR futures, Ultra 10-Year U.S. Treasury Note futures, and Ultra U.S. Treasury Bond futures, along with FICC-cleared U.S. Treasury notes and bonds. In addition to this, the enhanced cross-margining arrangement also extends to repo transactions featuring Treasury collateral with over one year remaining to maturity, as stated in a press release by CME Group.

"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, according to a press release by CME Group. "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."

Laura Klimpel, General Manager of Fixed Income Clearing Corporation (FICC) & Head of SIFMU Business Development at DTCC expressed satisfaction with the continued collaboration with CME Group. "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," Klimpel said.

DTCC and its subsidiaries hold a crucial position in the global financial marketplace, processing trillions of dollars in securities transactions daily. Acknowledged for their industry-leading solutions, DTCC contributes to the security and development of the financial sector, according to a press release by CME Group.