SEC permits customer cross-margining in U.S. Treasury market
Dual broker-dealer/FCM clearing members can extend Treasury cross-margining to eligible customer positions
Change
SEC approved an exemptive order and proposed rule change allowing customer cross-margining between CME-cleared U.S. Treasury futures and FICC-cleared U.S. Treasury cash-market positions.
Why it matters
The approval changes Treasury-market clearing mechanics by extending cross-margining from clearing-member proprietary positions to eligible customer positions carried by dual broker-dealer/FCM common members of FICC and CME. Clearing, margin, operations and customer-account teams must align eligibility, account treatment and margin-process controls before offering the cross-margining structure to customers.
Implications
- — Dual broker-dealer/FCM clearing members that are common members of FICC and CME must configure margin and account systems before offering customer cross-margining for eligible Treasury cash and futures positions.
- — Clearing and operations teams must separate eligible customer positions from non-eligible positions and apply the approved FICC/CME cross-margining rules only within the permitted structure.
- — Risk and margin teams must update customer-margin models, collateral workflows and client disclosures to reflect cross-margin offsets between FICC-cleared Treasury cash positions and CME-cleared Treasury futures.
Who is affected
- — Dually registered broker-dealer and futures commission merchant clearing members
- — FICC and CME common members
- — Treasury-market clearing and margin teams
- — Broker-dealer operations teams carrying customer Treasury positions
- — Institutional customers using Treasury cash and futures positions
What to watch
- — SEC approval date: April 15, 2026
- — Clearing venues: FICC and CME
- — Scope: customer cross-margining for U.S. Treasury cash-market and futures positions
- — Eligibility condition: dually registered broker-dealer/FCM common member