CME Group presented the American commodity futures trading committee (CFTC) to expand the arrangement of the intersecting margin with DePository Trust & Clearing Corporation (DTCC), in a move aimed at expanding the scope of the margins and capital efficiency of the final user customers.
DTCC said it plans to submit a similar file with the Securities and Stock Exchange Committee (SEC) in the near future. Taking into account the organizational approval, companies intend to offer the expanded service by December 2025.
Suggested changes for qualified users customers who have functions in the CME group and the government securities department (GSD) will allow the FICC to take advantage of the U.S. securities and the future of interest rates in the American Treasury.
The CME group described the initiative as a step towards greater efficiency for institutional investors.
The company has noticed that, under this arrangement, customers can choose to obtain qualified positions in both the clearing that was kept in the account of the cross margin and marginalized on the basis of the common risks of these situations.
To participate, the final users will be asked to use a bilateral registered future contract dealer (with CFTC) and the mediator (with SEC) via both clearing.
The CME and DTCC group said that the expansion depends on their current cooperation, which was designed to reduce the requirements of guarantee and capital freedom for the market participants.