As a central counterparty, CME Clearing acts as buyer to every seller and seller to every buyer to ensure the financial security of the marketplace and help clearing participants limit credit risk and achieve operational and financial efficiency.
Benefits of a centrally cleared environment
- Transparency: Of market pricing, market metrics, risk management practices, and financial safeguards
- Neutrality: Neutral party to every transaction; neutral risk management standards
- Security: Performance bond system to secure positions and mitigate risk ex-ante
- Daily mark-to-market of cleared positions to remove risk ex-post