Collateral Types Accepted for Futures, Options, Forwards, OTC FX & Commodity Swaps

Acceptable Collateral for Letters of Credit (LOC)

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CME Clearing accepts letters of credit as collateral from a list of CME approved banks. See below for more information.

Notes

  • Acceptable for Base
  • Capped at $500 million USDE across the clearing member and affiliates
  • Capped at 25% of margin requirement
  • Issued in the Exchange's name by approved banks
  • Not accepted for Forwards and 4d Swaps
  • Not permitted to meet house performance bond requirements for financial affiliated clearing members

Clearing members that wish to post additional LOCs on behalf of qualifying commercial end users may be eligible for a limited exemption from this cap, please email CreditRisk@cmegroup.com.

Haircut Schedule

  • 0%

Additional Letter of Credit Resources

Firms with assets exceeding specified limits may incur a true up margin requirement in an amount no less than the USDE amount over the specified limit. Firms will be notified by CME Clearing of the true up requirement amount.

All assets that are utilized to meet PB requirements in different currencies will be subject to an additional cross-currency haircut. For applicable haircuts, please see the Cross-Currency Haircut Percentages file found under Forms and Instructions.

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