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ETF Takeover of Wall Street Deepens as Debt Funds Are OK'd as Collateral

  • CME to allow five short-term Treasury ETFs as initial margin
  • Decision adds another use-case for quickly growing bond ETFs


Photographer: Mark Kauzlarich/Bloomberg

CME Group Inc. delivered another win to the booming $1.3 trillion bond exchange-traded fund market. 

The derivatives exchange operator’s clearing unit will accept a handful of short-dated Treasury ETFs to meet initial margin requirements, according to a statement Tuesday. Five funds including the $18 billion SPDR Bloomberg 1-3 Month T-Bill ETF (ticker BIL) qualify, CME said separately.