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CME Group to Launch New Securities Clearing House on December 7, 2026
CME Group Inc. has announced the launch of CME Securities Clearing Inc. (CMESC), a new clearing house set to begin operations on December 7, 2026. This initiative follows the approval from the U.S. Securities and Exchange Commission (SEC), which became effective on December 1, 2026. CMESC aims to provide central counterparty clearing for U.S. Treasury cash and repo transactions, marking the first significant competition to the Fixed Income Clearing Corporation (FICC) in the U.S. Treasury market in decades.
The establishment of CMESC is particularly timely as the SEC has mandated that all eligible U.S. Treasury transactions must be centrally cleared by December 31, 2026, with a similar requirement for repo transactions by June 30, 2027. One of the key features of CMESC is its ability to offer cross-margining with CME's existing futures products, allowing firms to reduce the total collateral required when holding offsetting positions in Treasury futures and cash Treasuries.
CME Group Chairman and CEO Terry Duffy highlighted the importance of this new clearing house in enhancing clearing capacity for market participants. While the formal launch is set for December 7, the ramp-up to full operations will be gradual, with early cross-margining activities and customer onboarding expected to take place in the months leading up to the first customer trades, anticipated around May 2026.
Source: KLEA News