CME ClearPort preserves the customer and dealer relationship and adds an extra level of protection to the transaction.
Customers (such as hedge funds, corporate treasuries, asset management firms and proprietary trading firms) continue to negotiate transactions through their IDB or dealer. Then they clear those transactions through a clearing member of CME Clearing (the central counterparty clearing house).
Clearing members collect margin from clients, who in turn provide margin to the central counterparty.
In the event your original counterparty (clearing member/dealer/other customer) defaults, the central counterparty covers the counterparty's obligations, insulating other clearing members dealers and other customers from losses.
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.