Cross margining

From MarketsWiki
(Redirected from Cross-margining)
Jump to navigation Jump to search

Cross margining is a procedure for margining related securities, options and futures contracts together when different clearing organizations clear each side of the position. [1]

The CME (CME) and London Clearing House (LCH) initiated[2] the world’s first cross-margining program across international borders. The cross-margining program enables CME and LCH to provide risk-based cost savings to clearing member firms and their affiliates who have positions in the CME Eurodollar contract and the LIFFE/NYSE Euronext Euribor or Euro LIBOR contracts.[3]


CME Group also has an agreement with the Fixed Income Clearing Corporation for cross margining.[4]

The Clearing Corporation announced a cross-margining agreement with Fixed Income Clearing Corporation on February 18, 2005 that allowed trades in 2, 5, 10 and 30-year Treasury futures on the then Eurex US exchange to be cross margined.