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The
Clearing Corporation Announces Cross-Margining with Fixed
Income Clearing Corporation
Chicago, January 18, 2005
The
Clearing Corporation ("CCorp") is pleased to announce
that it has entered into a cross-margining agreement with
the Fixed Income Clearing Corporation ("FICC") in
order to provide reduced margin requirements to common and
affiliated clearing participants who trade certain offsetting
securities and futures contracts and options.
The
cross-margining program will initially apply to house accounts
only and will include the 2, 5, 10 and 30-year Treasury products
that are currently listed on the Eurex US futures exchange
and that are cleared by CCorp. The Securities and Exchange
Commission ("SEC") reviewed and approved FICC's
cross-margining program last month.
"Cross-margining
allows clearing participants with offsetting positions in
both the primary and derivative markets to realize the benefits
of lower margin requirements, thus fostering liquidity in
the markets," said Dennis Dutterer, CEO of CCorp. "We
are pleased to offer these benefits to our clearing participants."
"Eurex
US is delighted with the Clearing Corporation's cross-margining
agreement with FICC," said Satish Nandapurkar, CEO of
Eurex US. "The potential for reduced trading costs through
cross-margining facilitates enhanced market liquidity and
benefits our members and their customers."
FICC
is a division of the Depository Trust Clearing Corporation
("DTCC"). It was formed on January 1, 2003, through
the merger of the Government Securities Clearing Corporation
("GSCC") and the MBS Clearing Corporation ("MBSCC")
in order to bring greater synergies, cost reductions and efficiencies
to the post-trade processing of fixed income instruments.
CCorp previously had a similar cross-margining agreement with
the GSCC.
About The Clearing Corporation
The Clearing Corporation, a stockholder-owned, Delaware corporation
now in its 80th year of business, is the only active independent
futures clearinghouse in the world. Additional information
on The Clearing Corporation is available at www.clearingcorp.com.
Media contacts:
CCorp Andrew Yemma, Intermarket Communications +1-212-888-6115
x 225
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