The cross-margining program will initially apply to house accounts only and will include the 2, 5, 10 and 30-year Treasury products that are currently listed on the Eurex US futures exchange and that are cleared by CCorp. The Securities and Exchange Commission ("SEC") reviewed and approved FICC's cross-margining program last month.
"Cross-margining allows clearing participants with offsetting positions in both the primary and derivative markets to realize the benefits of lower margin requirements, thus fostering liquidity in the markets," said Dennis Dutterer, CEO of CCorp. "We are pleased to offer these benefits to our clearing participants."
"Eurex US is delighted with the Clearing Corporation's cross-margining agreement with FICC," said Satish Nandapurkar, CEO of Eurex US. "The potential for reduced trading costs through cross-margining facilitates enhanced market liquidity and benefits our members and their customers."
FICC is a division of the Depository Trust Clearing Corporation ("DTCC"). It was formed on January 1, 2003, through the merger of the Government Securities Clearing Corporation ("GSCC") and the MBS Clearing Corporation ("MBSCC") in order to bring greater synergies, cost reductions and efficiencies to the post-trade processing of fixed income instruments. CCorp previously had a similar cross-margining agreement with the GSCC.