“Bringing cross-margining to the US Treasury market is a vital step towards providing measurable liquidity to the world’s most resilient financial market,” said Stephen Hood, head of clearing, Americas at Marex.

“We’re excited to help clients free up more of their capital and improve US Treasury trading efficiencies through this new offering, and we are proud that Marex facilitated the first customer cross-margin transaction under this new structure.”

This development comes after the Securities Exchange Commission approved DTCC and CME Group to extend their US Treasury cross margining arrangement to end user clients in April.

The move will enable clients of dually registered broker dealers and futures commission merchants to offset eligible positions across US Treasury securities cleared through DTCC’s FICC and interest rate futures cleared at CME.

Marex said that the new service will enhance liquidity in the US Treasury market and provide cost efficiencies for market participants.

“We are pleased with the early adoption of our new client cross-margining service, which is designed to make US Treasury markets more efficient for all participants,” said Suzanne Sprague, chief operating officer and global head of clearing and post-trade services at CME Group.

In January, Marex said that it was equipped to provide streamlined access to the FICC-CME cross margining programme, as it was a natural extension to its existing futures clearing, repo clearing and risk-based margin financing services.

“By executing the industry’s first trade under this new framework, Marex is excited to support clients engaging in Treasury basis trades and to help them enhance liquidity and capture capital efficiencies,” said Ram Vittal, chief executive, Marex Americas.

Cross margining between CME and FICC has been available for proprietary clearing member accounts since 2004, with enhancements introduced in 2024.

The US futures and swaps watchdog approved in December last year an expansion of CME and DTCC cross-margining service ahead of mandatory clearing for the vast US Treasury market, set to be rolled out from the end of 2026.

SEC Commissioner Mark Uyeda highlighted in March that the regulator understands the importance of cross-margining between treasury cash and futures positions to enhance central clearing of US Treasuries, following its review of applications for clearing treasury securities in February.

Speaking on the International Swaps and Derivatives Association "The Swap" podcast released in April, global head of market structure at BNY Nate Wuerffel said market participants are assessing whether cross margining facilities will be ready ahead of the US Treasury clearing mandate roll out.