CME Group to launch Treasury clearing house on Dec. 7

CME Securities Clearing will complement the company's longstanding cross-margining arrangement with FICC.

CME Group is set to launch a new SEC-registered clearing house for US Treasury transactions on Dec. 7, subject to regulatory approvals, as the market prepares for mandatory central clearing.

The SEC’s Treasury clearing mandate takes effect in stages, requiring central clearing for eligible cash Treasury transactions by Dec. 31, 2026, and eligible repo transactions by June 30, 2027.

CME Securities Clearing will handle eligible cash Treasury and repo transactions and allow participants to offset margin across cash Treasuries, repo and CME Group interest rate futures, the company stated. The service will support both “done-with” and “done-away” execution and clearing.

The new clearing house will operate alongside CME Group’s existing cross-margining partnership with FICC. CME said the FICC arrangement already produces more than $2 billion in daily margin savings, while the new service is intended to provide additional capacity and capital efficiency.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

CME Group is set to launch a new SEC-registered clearing house for US Treasury transactions on Dec. 7, subject to regulatory approvals, as the market prepares for mandatory central clearing.

The SEC’s Treasury clearing mandate takes effect in stages, requiring central clearing for eligible cash Treasury transactions by Dec. 31, 2026, and eligible repo transactions by June 30, 2027.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.