Clearing members protect buyers and sellers from financial loss by assuring performance on each traded contract. Although many different customers trade at CME Group, all trades are ultimately conducted between CME Clearing and a clearing member.
Clearing members play a valuable role in the clearing process. They are highly capitalized, closely monitored and carefully selected companies that guarantee all trades made through CME Group’s Exchanges (CME, CBOT, NYMEX and/or COMEX) and/or cleared by CME’s Clearing House. A clearing member must be registered as an Futures Commission Merchant with the CFTC if it will clear customer trading activity. A clearing member must have privileges of clearing membership on an Exchange in order to clear that Exchange’s products. For example, CME products must be cleared by a clearing member that has CME clearing membership privileges.
Clearing members assume full financial and performance responsibility to CME’s Clearing House for all transactions executed through them and/or cleared by CME’s Clearing House. Clearing members are responsible and accountable for every position they carry, whether it is for the account of a member, non-member customer, the clearing member’s affiliates or its own proprietary account.