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CME Clearing's Financial Safeguards System
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

At December 30, 2011, CME Clearing maintained aggregate performance bonds of approximately $90 billion.1 The following highlights additional available resources of CME Clearing at December 30, 2011 in the event that the resources of the defaulting firm are exhausted.
 

Base Financial Safeguards package
CME Surplus Funds2 $100,000,000
Guaranty Fund Contributions $2,968,000,000
Assessment Powers $8,161,000,000
Aggregate base financial safeguards3 $11,229,000,000
IRS Financial Safeguards package4
CME Designated Working Capital $100,000,000
Guaranty Fund Contributions $948,000,000
Minimum Total Assets Available for Default $1,048,000,000
CDS Financial Safeguards package5
CME Designated Working Capital $100,000,000
Guaranty Fund Contributions $629,000,000
Minimum Total Assets Available for Default $729,000,000

 

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).




 

1 Aggregate performance bonds stated represent the value after any applicable CME Clearing performance bond haircuts.
2 CME Surplus funds is targeted at $100 million and represent the amount of working capital reduced by an amount necessary to support normal operations and amounts designated for our IRS and CDS financial safeguards package.
3 Exchange memberships assigned to CME Clearing are available in the event of the respective clearing member default.
4 IRS Financial Safeguards additionally include assessment powers as detailed in Rule 8G802 (Protection of Clearing House).
5 CDS Financial Safeguards additionally include assessment powers as detailed in Rule 8H802 (Protection of Clearing House).