CFTC Proposes Expanding CME-FICC Cross-Margining Arrangement to Customers

The Commodity Futures Trading Commission (CFTC) has approved a proposed order to grant a limited exemption that would allow the Chicago Mercantile Exchange Inc. (CME) and the Fixed Income Clearing Corporation (FICC) to expand their existing cross-margining arrangement to include certain customers. Under current market rules, cross-margining capabilities—which permit the offsetting of futures positions cleared at CME against cash market positions cleared at FICC—are limited strictly to clearing members. The proposed order would broaden access to eligible customer accounts subject to appropriate regulatory safeguards. CFTC Acting Chairman Caroline D. Pham highlighted the importance of the initiative in the context of broader U.S. Treasury market reforms, stating that extending cross-margining to customers is expected to deliver capital efficiencies while bolstering liquidity and market resiliency. The proposal implements recommendations made by the CFTC Global Markets Advisory Committee and aligns with the Securities and Exchange Commission's (SEC) Treasury clearing mandate. The public comment period for the proposed order will remain open for 30 days following its publication in the Federal Register. Comments can be submitted electronically through the CFTC's online portal.