CME Group » Clearing » Financial and Collateral Management » Collateral Management Programs (IEF
Collateral Management Programs (IEF Programs)
Description of IEF Programs

Back to Clearing Home  |  Back to Financial and Collateral Management

 

View the Guide to CME Group Collateral Management Programs (PDF)

IEF2
  • Began in July, 2001.
  • Is a direct investment in any of CME’s 21 approved institutional classes of Money Market Mutual Funds.
  • Processing of payments and orders is supported by CME Shareholder Servicing LLC.
  • Investments get a 3% CME haircut and a 2% regulatory haircut.
  • Diversification requirement associated with all investments over $100 million.
IEF3
  • A specialized collateral program that permits CME clearing firms to pledge Reg. 1.25 collateral that CME does not accept directly.
  • Supported through a partnership with The Bank of New York (BNY) and JP Morgan (JPM).
  • Clearing firms are debited cash in the morning and substitute CME approved, Reg.1.25 collateral in the afternoon.
  • Collateral is moved into a tri-party account, controlled by CME, at either BNY or JPM.
  • The deal unwinds in the morning of the next business day and begins again.
IEF4
  • A specialized collateral program that permits CME clearing firms to pledge Reg. 1.25 collateral that CME does not accept directly.
  • Supported through a partnership with BNY and JPM.
  • Is a “term” pledge of securities with the “term” defined by the clearing member.
  • Clearing firms transfer securities into a tri-party account, controlled by CME, at either JPM or BNY.
  • Substitutions may occur during the business day as long as the “deal” amount is not violated.
IEF5
  • Began in July, 2004.
  • Supported through a partnership with JPM, Fifth Third Bank and Deutsche Bank.
  • A bank account that pays a monthly “hard dollar” benefit.
  • All transfers processed by CME on behalf of the clearing firm.
 

Back to top  |  Back to Clearing Home  |  Back to Financial and Collateral Management