Clearers face heavy lift on CME-FICC cross-margin service
Dual registration and regulation plus uncertainty over close-outs all weigh on client offering
The programme allowing clients to cross-margin cleared US Treasuries cash and repo with futures trades was approved by US regulators in April this year, but so far only a handful of firms have been able to complete client transactions, and it hasn’t been easy, sources say.
“It’s hard and it’s complicated,” says Stephen Hood, head of clearing Americas at Marex, which cleared the first cross
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