📈Proposed Rule Change for Cross-Margining Agreement Between FICC and CME
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Amend and Restate the Cross-Margining Agreement Between FICC and CME
Summary
The Securities and Exchange Commission announces the proposed Second Amended and Restated Cross-Margining Agreement between the Fixed Income Clearing Corporation and the Chicago Mercantile Exchange. This agreement aims to improve margin efficiency and risk management for eligible affiliates while ensuring compliance with regulatory standards. The changes also extend the termination notification period and clarify participant responsibilities in the cross-margining arrangement.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change allows Eligible Affiliates to cross-margin in accordance with the Separate Margining Requirement, creating capital efficiencies and enhancing risk management for participants, which is crucial for business operations in financial markets. The regulations directly impact compliance, margin requirements, and may affect financial strategies for affected parties.