Approves Exemptive Order and Rule Change for Customer Cross-Margining in U.S. Treasury Market
Summary
The SEC issued a conditional exemptive order permitting broker-dealers dually registered as futures commission merchants (FCMs) with CFTC to extend cross-margining to customers for U.S. Treasury securities. The order exempts these dually-registered entities from the broker-dealer customer protection rule when making cross-margining available in futures accounts. The SEC also approved FICC's proposed rule change to incorporate a Third Amended and Restated Cross-Margining Agreement with CME into FICC Government Securities Division rules. Prior to this action, only clearing members could cross-margin futures positions in U.S. Treasury securities cleared at CME with cash market positions cleared at FICC.
What changed
The SEC issued a conditional exemptive order and approved a proposed rule change by the Fixed Income Clearing Corporation (FICC) that together extend cross-margining of U.S. Treasury securities to customers. The exemptive order permits broker-dealers dually registered as FCMs and jointly clearing members of FICC and CME to offer cross-margining to customers in futures accounts, subject to specified conditions. The FICC rule change incorporates a Third Amended and Restated Cross-Margining Agreement with CME into FICC Government Securities Division rules. Previously, only clearing members could cross-margin futures positions in U.S. Treasury securities at CME with cash market positions at FICC.\n\nAffected dually registered broker-dealers and FCMs that are common members of FICC and CME should monitor for final publication of these instruments and evaluate whether they meet the conditions to offer customer cross-margining. The action represents a significant expansion of cross-margining access from clearing members to customers in the U.S. Treasury market.
What to do next
- Monitor for Federal Register publication of the exemptive order (Release No. 34-105248) and FICC rule change (Release No. 34-105249)
- Assess eligibility conditions for offering customer cross-margining under the new framework
Archived snapshot
Apr 16, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Press Release
SEC Approves Exemptive Order and Proposed Rule Change to Permit Customer Cross-Margining in the U.S. Treasury Market
For Immediate Release
2026-36 Washington D.C., April 15, 2026 —
The Securities and Exchange Commission today issued a conditional exemptive order that permits customer cross-margining of cash market positions in U.S. Treasury securities cleared by a registered clearing agency and futures positions in U.S. Treasury securities cleared by a registered derivatives clearing organization. The order provides for an exemption from the broker-dealer customer protection rule for a broker-dealer that is dually-registered as a futures commission merchant with the Commodity Futures Trading Commission (CFTC), and is a joint clearing member of the clearing agency and derivatives clearing organization, to permit the broker-dealer to make cross-margining available to certain customers in a futures account provided the conditions of the order are met.
In addition, the Securities and Exchange Commission approved a proposed rule change filed by the Fixed Income Clearing Corporation (FICC) pursuant to which it would enter into a proposed Third Amended and Restated Cross-Margining Agreement with the Chicago Mercantile Exchange Inc. (CME) and incorporate that agreement into the FICC Government Securities Division rules, along with related rule changes. The agreement would extend the availability of cross-margining to positions cleared and carried for customers by a dually registered broker-dealer and futures commission merchant that is a common member of FICC and CME. The agreement and related rules are consistent with the exemptive order. Prior to today only clearing members could cross-margin futures positions in U.S. Treasury securities cleared at CME with cash market positions in U.S. Treasury securities cleared at FICC.
“Today’s issuance of orders completes another step in the implementation of Treasury clearing,” said SEC Commissioner Mark T. Uyeda, who has been leading the SEC’s efforts in this area. “It advances the goal of both the SEC and the CFTC to unlock additional liquidity and helps ensure the market for U.S. Treasury securities remains resilient.”
The exemptive order and order approving the proposed rule change will be available on SEC.gov before publication in the Federal Register, and a related CFTC exemptive order will be available on CFTC.gov and also in the Federal Register.
Last Reviewed or Updated: April 15, 2026
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