Federal Register #SR-CMESC-2026-007

SEC Notice: Proposed Rule Change for Cross-Margin Arrangements by CME Securities Clearing Inc.

This SEC notice details a proposed rule change by CME Securities Clearing Inc. (CMESC) to establish cross-margining arrangements with the Chicago Mercantile Exchange Inc. (CME). - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors: - CME Securities Clearing Inc. (CMESC) - Chicago Mercantile Exchange Inc. (CME) - Services Requested: - Establishment and operation of cross-margining arrangements between CMESC and CME - Rule modifications, risk management policy updates, and operational agreements - Enable cross-margining of eligible securities transactions and interest rate futures for Members and Independent Users - Unique Requirements: - Adoption of new risk management methodologies and margin calculation frameworks (including SPAN 2) - Joint custody accounts for collateral - Eligible margin types: U.S. Dollar cash and U.S. Treasury securities - Enhanced capital efficiency and systemic risk reduction - Default management and risk monitoring procedures - No products or purchase quantities are requested; this is a regulatory notice, not a procurement opportunity.

Description

The Securities and Exchange Commission (SEC) published a notice regarding a proposed rule change filed by CME Securities Clearing Inc. (CMESC). The proposal aims to adopt standards for establishing cross-margin arrangements and to implement a cross-margin arrangement with the Chicago Mercantile Exchange Inc. The rule change includes amendments to CMESC rules, margin policies, credit policies, and risk management methodologies to support the cross-margining framework. The proposal also outlines the operational and risk management procedures for the cross-margining arrangement, including margin calculation, eligible margin, custody accounts, and default management.

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