Federal Register #SR-FICC-2025-801

SEC Approval of Amended Cross-Margining Agreement Between FICC and CME

This notice concerns the Securities and Exchange Commission's (SEC) review and approval of amendments to the Cross-Margining Agreement between the Fixed Income Clearing Corporation (FICC) and the Chicago Mercantile Exchange (CME): - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - Fixed Income Clearing Corporation (FICC) - Chicago Mercantile Exchange Inc. (CME) - Products/Services Requested: - Cross-Margining Clearing Services - Provision of cross-margining services between FICC and CME - Includes risk management, margin calculation, and default management for customer and proprietary positions - No specific part numbers or quantities; this is a regulatory approval of service amendments - Unique or Notable Requirements: - Extends cross-margining to customer positions carried by joint clearing members (broker-dealers and futures commission merchants) - Enhances risk management and capital efficiency - Updates eligibility criteria, margin methodologies, and default management procedures - Focuses on regulatory compliance, financial stability, and transparency in risk management - Primary Locations: - SEC (federal office) - Chicago Mercantile Exchange Inc. (Chicago, IL) - United States Postal Service (referenced as a federal office)

Description

This notice announces the filing of Partial Amendment No. 2 and the Commission's no objection to an advance notice regarding amendments to the Cross-Margining Agreement between the Fixed Income Clearing Corporation (FICC) and the Chicago Mercantile Exchange (CME). The amendments aim to restate and modify the second amended agreement and update related Government Securities Division (GSD) rules to extend cross-margining to customer accounts carried by dually registered broker-dealers and futures commission merchants. The changes include risk management enhancements, margin calculation methodologies, and default management procedures to promote robust risk management and systemic stability.

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