CME and ICE are treading a “nuanced” path to US Treasury clearing, writes Risk Magazine. CME is floating a hybrid model, ICE seems committed to agency clearing, while LCH is yet to reveal its hand.
CME has in recent weeks briefed key stakeholders, including banks, broker-dealers and hedge funds, on preliminary plans for its proposed central counterparty for US Treasury trades.
A clearing executive at a large US bank described CME’s proposal as a hybrid approach that will allow banks and broker-dealers to offer UST clearing as a standalone service or part of a bundle.