CME Group bids to enter US Treasuries clearing business, Financial Times reports

By Thomson Reuters Mar 12, 2024 | 5:22 PM

(Reuters) – CME Group said it will apply this year to clear U.S. Treasuries, becoming the first exchange company to publicly announce its plans to enter the world’s biggest bond market, the Financial Times reported on Tuesday.

CME’s Chief Executive Officer Terry Duffy said he expected more companies to apply to clear Treasuries, the report added.

CME Group did not immediately respond to a Reuters request for comment.

Its peer Intercontinental Exchange’s president of fixed income and data services, Chris Edmonds, told Reuters that, currently, no market participant is fully compliant with the rules to offer Treasury clearing services.

Still, he said, ICE “will find a way to serve the market”.

CME already operates CME Clearing, which offers clearing and settlement services for exchange-traded contracts and over-the-counter derivatives transactions.

The exchange operator also offers global benchmark products across major asset classes, including futures and options.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru and Carolina Mandl in New York; Editing by Shweta Agarwal)