# 2025-23885: FICC and CME Revamp Their Cross-Margining Agreement for Efficiency

2025-23885, Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Amend and Restate the Second Amended and Restated Cross-Margining Agreement Between FICC and CME and Amend Related GSD Rules, is a Federal Register notice from Securities and Exchange Commission published 2025-12-29 (as of 2026-06-08).

- Canonical: https://policyrisk.com/federal-register/2025-23885
- As of: 2026-06-08
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2025-23885
- Title: Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Amend and Restate the Second Amended and Restated Cross-Margining Agreement Between FICC and CME and Amend Related GSD Rules
- Type: Notice
- Agencies: Securities and Exchange Commission
- Citation: 90 FR 60791
- Published: 2025-12-29
- Effective: unknown
- Comments close: not stated
- Significant: no
- Touches household money: no
- Regulation identifier numbers: none
- Last updated: 2026-06-08

## In one line

FICC and CME Revamp Their Cross-Margining Agreement for Efficiency

## Summary

The Fixed Income Clearing Corporation (FICC) is updating its cross-margining deal with the Chicago Mercantile Exchange (CME) to make things clearer and smoother for everyone involved. These changes affect traders and clearing members who use these systems, aiming to improve risk management and efficiency. The new rules and fixes are set to roll out soon, helping save money and reduce hassle in handling trades.

## Effects PRIA read

- Customers Gain Cross‑Margining Access: benefit, medium. FICC and CME propose letting customers of a dually registered broker‑dealer/futures commission merchant (an Eligible BD‑FCM) use cross‑margining. Customer positions would get the same margin reduction method as proprietary positions, calculated customer‑by‑customer, with any margin reduction capped…
- Tight Eligibility Rules to Participate: cost, medium. Only an Eligible BD‑FCM — a firm that is registered both as a broker‑dealer with the SEC and as an FCM with the CFTC — can open Customer Cross‑Margining Accounts. Cross‑Margining Customers must be a "futures customer" under CFTC Regulation 1.3 and be a Sponsored Member or Executing Firm Customer as…
- Customer Must Sign Subordination Agreement: cost, medium. A Cross‑Margining Customer must enter into an agreement with its Eligible BD‑FCM that includes a Subordination Agreement. Under that Subordination Agreement the Cross‑Margining Customer agrees to subordinate its claims under the Securities Investor Protection Act (SIPA) and Subchapter III of Chapte…
- Customer Margin Segregation and Custody Protections: benefit, medium. FICC would credit Cross‑Margining Customer Margin to a Cross‑Margining Customer Margin Custody Account in the name of the Eligible BD‑FCM for the benefit of its customers and treat those assets as "financial assets" and a "securities account" under New York's UCC. FICC would hold these assets in se…
- Separate Default Rules for Customer Accounts: benefit, medium. Under the proposed Third A&R Agreement, Customer Positions and Proprietary Positions would form separate "Liquidation Portfolios" and would be closed‑out and netted separately so customer margin cannot be used to satisfy proprietary obligations. The agreement also provides for joint liquidation, bu…

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## Sources
- [2025-23885 on federalregister.gov](https://www.federalregister.gov/documents/2025/12/29/2025-23885/self-regulatory-organizations-fixed-income-clearing-corporation-notice-of-filing-of-proposed-rule)
- [2025-23885 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2025-12-29/pdf/2025-23885.pdf)

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- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2025-23885 (as of 2026-06-08).