Cross-margining at CME slowed by practical challenges

Hurdles

Nearly five months on from the start of mandatory clearing in the US, only a handful of clients at two dealers – Barclays and Citi – have been able to take advantage of cross-product margining between listed and over-the-counter derivatives at CME Group, the first venue to offer the service. The operational challenges faced by dealers and clients – which include finding the optimal offsets and rearranging clients' portfolios to allow them to take advantage – mean take-