CME-FICC Cross-Margining Arrangement: FAQ Categories

Today, the CME–FICC Cross-Margining Arrangement allows for cross-margining of CME Group interest rate futures products with FICC cleared cash Treasuries. The arrangement is applicable to house (proprietary) accounts of CME Clearing Members and FICC GSD Netting Members. FICC and CME Group are working together to enhance the existing cross-margining arrangement for the benefit of common members (and their affiliates, where applicable) when trading U.S. Treasury securities and CME Group interest rate futures that have offsetting risk exposures. The changes, which have received approval from U.S. financial regulators, would expand the scope and efficiency of the margin offsets that are available to clearing members of CME and FICC / GSD, thus reducing margin charges and allowing for more efficient capital usage.1 The information and examples provided in these FAQs are for general informational and indicative purposes only. Such information may not be relied on by any party for any purpose. Any statements in these FAQs, like any statements regarding hypothetical scenarios, are subject to inherent uncertainties. Neither FICC nor CME undertakes to update these FAQs to reflect changes or events that occur after the date of publication. The range of available actions described in this document and the discussion of actions that could be taken in certain scenarios are hypothetical only and not binding on any parties in any forum, including but not limited to FICC, CME, or any of its or their affiliates.

Enhancements are focused on expanding the eligible CME Group interest rate futures products available for cross-margining and simplifying the overall margin calculation process that would apply to a crossmargining participant’s2 Pursuant to the Restated Agreement, “Cross-Margining Participant” “means a Joint Clearing Member that has become, or a Clearing Member that is part of a pair of affiliated Clearing Members each of which has become, a participant in the cross-margining arrangement between FICC and CME established pursuant to this Agreement. In the latter case, the term “Cross-Margining Participant” shall, where the context requires, refer collectively to the pair of Cross-Margining Affiliates.” eligible positions and streamlining the default management process by making clear that a joint liquidation would be the preferred method used by FICC and CME in the event of a member default.

Click a subtopic to see FAQs about FICC's cross-margining, including its arrangement with CME.

	FICC PDF FAQs
	FICC & CME
	Enhanced Cross-Margining Program
	Processes
	Timeline and Schedules