CME Cleared OTC Cash Flows Explained is a narrated slide presentation that clarifies how CME Group processes cleared interest rate swaps and credit default swaps. At CME, Cleared OTC Cash Flows maintain the current execution processes and platforms of bilateral OTC transactions but have the added security of central counterparty clearing.
The presentation takes the viewer through the four components of cleared OTC transactions:
• Upfront Payment
• Variation Margin
The narrator provides examples that demonstrate each of the components involved in the CME cleared OTC cash flows.