Street Calls of the Week
NEW YORK - CME Group announced Monday it has filed with the CFTC to expand its existing cross-margining agreement with The Depository Trust & Clearing Corporation (DTCC).
The proposed enhancement aims to provide increased margin savings and capital efficiencies to end-user clients by December 2025, subject to regulatory approval. DTCC plans to make a similar filing with the SEC in the near future. This initiative aligns with CME Group’s strong operational efficiency, reflected in its impressive 100% gross profit margin.
The expansion would allow eligible clients with positions at both CME Group and DTCC’s Fixed Income Clearing Corporation (FICC) Government Securities Division to benefit from capital efficiencies when trading U.S. Treasury securities and CME Group interest rate futures with offsetting risk exposures.
To participate, clients will need to use the same dually-registered Futures Commission Merchant and broker/dealer at both clearinghouses. Under the arrangement, clients could elect to have positions in eligible products at both institutions carried in a cross-margining account and margined based on their combined risk.
The filing represents a significant step toward implementing the cross-margining capabilities first announced by the two market infrastructure providers. The initiative would extend to end-users the type of margin efficiencies previously available to clearing members.
CME Group operates as the world’s leading derivatives marketplace, while DTCC serves as the premier post-trade market infrastructure for the global financial services industry.
This information is based on a press release statement issued by CME Group.
In other recent news, CME Group reported its second-highest August average daily volume (ADV) of 28.1 million contracts, highlighting a strong performance in its derivatives marketplace. The company achieved a record monthly ADV in cryptocurrency products, with 411,000 contracts representing a notional value of $14.9 billion. CME Group also announced plans to introduce options on Solana and XRP futures, set to launch on October 13, 2025, pending regulatory approval. Additionally, the company reached significant milestones in its credit futures, with trading volume surpassing 450,000 contracts and open interest representing over $700 million in notional value. In collaboration with FanDuel, CME Group is developing event-based trading contracts aimed at retail investors, anticipated to launch later this year. Furthermore, CME Group declared a third-quarter dividend of $1.25 per share, payable on September 25, 2025, to shareholders of record as of September 9. These developments reflect CME Group’s ongoing expansion and innovation across various market segments.
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