CFTC and SEC Advance Treasury Market Reforms with Cross-Margining Expansion
The Commodity Futures Trading Commission has approved a limited exemption allowing CME and FICC to extend cross-margining arrangements beyond clearing members. Acting Chairman Caroline D. Pham emphasized the MOVE aligns with Treasury market reforms coordinated with the SEC.
Safeguards will govern access for select customers, targeting capital efficiency without compromising risk management. The exemption’s narrow scope reflects stringent operational controls, with public comments open for thirty days post-Federal Register publication.
Market stability remains paramount as regulators balance innovation with oversight. The initiative underscores growing institutional adoption of optimized collateral mechanisms in derivatives markets.