Performance Bonds/Margins

Performance Bonds, also known as margins, are deposits held at CME Clearing to ensure that clearing members can meet their obligations to their customers and to CME Clearing. Performance bond requirements vary by product and market volatility.

About Performance Bonds/Margins

Initial Margin Requirements

There two different kinds of margin that a market participant should be aware of. Initial margin is the up-front payment, a percentage of the trade price, made prior to a market transaction when purchasing on that margin. After the initial margin is met, a market participant is required to keep up maintenance margin. This is the amount of equity required to retain an open position. 

Speculative ("Spec") /non-member initial margin requirements for all products are set at 110% of the maintenance margin requirement for a given product. Hedger/member initial margin requirements for all products are set at 100% of the maintenance margin requirement for a given product.

The following table¹ depicts the aforementioned logic in practice:

CC Rate Type Description ISO Current Initial Current Maintenance
Outright Rates
CRUDE OIL SPREADS - Outright Rates
CANADIAN HEAVYCRUDE(NET ENERGY) FUT(WCC)
WCC Spec Mnths 3 - 6 USD 1,540 1,400
WCC Hedge/Member Mnths 3 - 6 USD 1,400 1,400

The maintenance margin requirement for Canadian Heavy Crude (Net Energy) Futures Months 3-6 is $1,400. The Hedge/Member initial margin requirement is $1,400, while the Spec initial margin requirement is $1,540 ($1,400*1.1).

¹ For illustration purposes only

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