SEC Eases Margin Rules for Treasury-Futures Cross-Trading
Published Date: 4/20/2026
Notice
Summary
The SEC is giving special permission to certain broker-dealers who also handle futures to combine (or cross-margin) U.S. Treasury securities and related futures for margin calculations. This change helps these firms manage risk more efficiently and could save money for their customers. The new rules start soon and apply only to firms that meet specific membership requirements.
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Analyzed Economic Effects
4 provisions identified: 1 benefits, 3 costs, 0 mixed.
Customers Can Cross‑Margin Treasuries and Futures
Beginning with the SEC order issued April 15, 2026, certain broker-dealers that are also futures commission merchants (``Eligible BD-FCMs'') may carry cleared U.S. Treasury securities and related futures for customers in a CFTC futures account from novation through settlement and cross‑margin those positions for initial margin purposes. The order says cross‑margining can reduce a customer's initial margin requirements and the associated margin costs by recognizing risk offsets across the customer's Treasury and related futures positions.
You Must Agree and Give Up SIPA Protections
Before a customer may participate, the Eligible BD-FCM and the customer must sign a written agreement and the customer must sign a written non‑conforming subordination agreement acknowledging that the customer's Eligible Securities Positions and associated margin will not receive customer treatment under the Exchange Act or SIPA. The agreement also states those assets will be subject to Subchapter IV of Chapter 7 of the U.S. Bankruptcy Code (the CFTC/commodity broker liquidation regime) and that SIPA or Exchange Act customer claims relating to those positions will be subordinated.
You Must Post Aggregate Initial Margin
An Eligible BD-FCM must collect from each cross‑margining customer at least the aggregate amount of initial margin required by each clearing agency and DCO for that customer's Eligible Customer Positions. Clearing agencies and DCOs must calculate initial margin on a gross (customer‑by‑customer) basis using the same margin reduction methodology.
Only Futures‑Eligible Customers Can Join
Participation is limited to customers that are eligible for futures accounts as defined in CFTC Rule 1.3; Eligible Securities Positions and associated margin must be carried in a futures account so that CFTC Part 190 protections apply. The Customer Cross‑Margin Program requires written consent from both the Eligible BD‑FCM and the customer before cross‑margining is applied.
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