By a daring beard
NEW YORK (REUTERS) – Two utilities in the US will roll out new rules by the end of this year that will determine the amount of lifting base funds and other investors in transactions, a step that can compensate for rising transaction costs. of upcoming clearing requirements.
De Depository Trust and Clearing Corporation (DTCC), een marktinfrastructuurbedrijf en futures-uitwisselingsoperator CME Group lanceerden vorig jaar een verbeterde cross-margining-regeling voor het opruimen van leden die zowel de Amerikaanse Treasury Securities als CME Group Rentevoet Futures handelen en wissen.
They are planning to expand it in December to cleaning up the customers of members, depending on the approval of the regulations, they said in a joint statement on Monday.
It would become available if participants in the Treasury Market are preparing for new rules that were aimed at reducing the systemic risk in the $ 28.5 trillion treasuries market through the Securities and Exchange Commission in 2023 by forcing more transactions via Clearinghuizen .
“Coordinating improved cross-margining for end user customers with the regulatory timeline for extensive American Treasury Clearing requirements stimulates greater use of central clearing, reducing the systemic risk,” the companies said.
Clearing Houses Act as an intermediary between buyers and sellers, but they require that traders are called margin, to cover potential losses in their positions. With this scheme, the required collateral will be calculated on positions in both cash and futures, instead of on every market independent of the other.
According to the proposal, the fixed-income clearing Corporation (FICC), a subsidiary of DTCC, cross-margin accounts will spend, so that all qualifying positions in the accounts can be compensated against eligible CME Group Renter Futures. CME Group enables market participants to allocate futures to end user Cross-Margin accounts during the day, making them available for an offset within the Cross-Margin Framework.
“Customers who have material compensations in the exposure between their futures and their cash and repo positions … can benefit from the same type of portfolio margin and capital efficiency” available for the cleaning of members of CME Group and the governmental effects department of FICC, Laura Walkpel, Head From fixed -income and financing solutions at DTCC, said in an interview.
The new central clearing rules must be implemented in phases in June 2026, but various Wall Street traders have recently asked the SEC to extend the most important deadlines by one year.
(Reporting by Davide Barbuscia; Edit by Paul Simao)
