Quick Facts on Margins at CME Clearing - July 2011
By CME Group - Fri Aug 05 13:13:00 CDT 2011 CT
Related Keywords: Clearing Services, Tool & Analytics
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Margins/Performance Bonds as a Risk Management Tool

Learn about margins as a CME Clearing risk management tool. Margins, also known as performance bonds, provide security to the market and individual market participants. This document provides detailed information on margin policies for listed futures products with CME Group. It includes information on the following:

  • Margin changes are routine in CME Group markets.
  • Margins are set based on volatility, not price.
  • Margins are part of CME Clearing’s neutral risk management practices; they are not intended to move the market one way or another.
  • There are two different kinds of margin levels, initial and maintenance, and changes for both are usually announced 24 hours in advance.

Quick Facts on Margins at CME Clearing is a 4-page fact sheet.


 
 
 
 
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