CME Clearing's Financial Safeguards System

CME Group is vitally aware of its role in global markets and is confident that our operational standards paired with our financial safeguards provide an effective set of risk management tools and capabilities that result in industry leading risk management capabilities. Risk management and financial surveillance are principal functions of CME Clearing’s financial safeguards system.

The system:

  • Is designed to provide the highest level of safety and the early detection of unsound financial practices
  • Is continually evaluated and updated to reflect the most advanced risk management and financial surveillance techniques
  • Is administered by senior management from the Audit, Clearing, Banking and Collateral Services, Legal, Market Regulation, Risk Management departments including additional executive areas of CME Group

The following highlights available resources of CME Clearing at December 31, 2016 in the event of a clearing member default.

Base Financial Safeguards Package
Guaranty Fund Contributions $3,330,501,971
Designated Corporate Contributions $100,000,000
Assessment Powers* $9,158,880,419
IRS Financial Safeguards Package
Guaranty Fund Contributions $1,970,330,440
Designated Corporate Contributions $150,000,000
Assessment Powers $917,239,092
CDS Financial Safeguards Package
Guaranty Fund Contributions $700,000,000
Designated Corporate Contributions $50,000,000
Assessment Powers $101,544,186

* Base Assessments are calculated to reflect the potential obligation that each clearing member could be called for in the event clearing member defaults exhaust the guaranty fund, however the total amount available would be reduced by the defaulted clearing members assessment obligations since they would no longer be able to satisfy their obligations.

Read CME Clearing's Financial Safeguards Brochure for complete details on CME Clearing’s financial safeguards system. The brochure is intended to provide an overview of CME Clearing’s financial safeguards system. For additional details and applicable rules, please reference the respective CME Clearing rulebooks published on CME Group’s website (www.cmegroup.com).