Key facts
- CME Group has submitted an initial proposal to the SEC for an internal cross-margining arrangement.
- The proposed service will allow for margin offsets between futures, cash, and repo trades involving US Treasuries.
- This initiative is intended to offer an alternative to the existing offset program with the Fixed Income Clearing Corporation (FICC).
- CME Group aims to make this new cross-margining arrangement available to clients by 2027.
CME Group is advancing its strategy to directly challenge the Fixed Income Clearing Corporation (FICC) in the clearing of US Treasury securities. The exchange operator has submitted an initial proposal to the U.S. Securities and Exchange Commission (SEC) for an internal cross-margining arrangement. This new program is designed to offer clients margin offsets between futures, cash, and repo trades executed within CME's ecosystem. The initiative aims to provide an alternative to CME's existing offset program with FICC, potentially enhancing capital efficiency for market participants. CME Group intends to make this service available to clients by 2027.