Clearing Overview Brochure
Mon Jul 19 11:34:00 CDT 2010 CT
Related Keywords: Clearing Services

In today’s market environment, effective risk management is a business imperative. Risk management opens the door to opportunity. It supports faster and smarter decisions. It makes essentials like food and energy more efficient to bring to market. It encourages investment and economic progress around the world. And although risk management can be measured in dollars, euros and yen, it also depends on the tangible benefits of transparency, liquidity, trust and confidence. That’s what CME Group’s centralized clearing capability brings to the global derivatives marketplace it serves.

By acting as the counterparty to every trade, CME Clearing virtually eliminates counterparty credit risk, meaning that for every trade completed on our exchange, we guarantee the financial soundness of both parties. We lead the industry in providing a comprehensive set of risk management services – providing you the security and confidence market participants need to operate, invest and grow. By being at the center of every transaction, we can protect everyone’s interest and ensure the integrity of the marketplace. And help you rise above the risks.

This piece illustrates the basics of how the process works and describes the safeguards we have in place.