The Depository Trust & Clearing Corporation and CME Group (NASDAQ: CME) announced they received regulatory approvals from the Securities and Exchange Commission and Commodity Futures Trading Commission for an expanded cross-margining arrangement for end-user clients.

The service will begin April 30, extending cross-margining benefits to end-user clients of dually registered broker/dealers and futures commission merchants that are common members of both DTCC's Fixed Income Clearing Corporation and CME Group. Clients will be able to achieve margin efficiencies when clearing U.S. Treasury securities through FICC and interest rate futures through CME when those transactions have offsetting risk exposures.

"The importance of efficient cross-margining opportunities across U.S. Treasury securities and futures activity is critical as centrally cleared U.S. Treasury activity continues to grow," said Frank La Salla, President and CEO at DTCC. He noted their current cross-margining arrangement with CME Group creates an average of $1 billion in risk offsets daily across both clearinghouses.

Terry Duffy, CME Group Chairman and Chief Executive Officer, said the expansion comes at a pivotal moment for U.S. Treasury market participants as the SEC's central clearing mandates take effect.

Cross-margining arrangements between CME and FICC have been available to common clearing members for their proprietary accounts since 2004. Under the new arrangement, FICC will designate cross-margin accounts allowing eligible positions to offset with eligible CME Group interest rate futures. CME Clearing will allow participants to direct futures to end-user cross-margin accounts throughout the day.

The information is based on a press release statement from the companies.