How the Migration Process Works

To migrate OTC CDS trades to standardized CME Group contracts, both counterparties must have CME Clearing membership, or sponsorship of a clearing member. With clearing requirements met, participants use the migration web interfaces to upload files, perform migration analysis, and receive migration results.

  1. Both counterparties agree to migrate trades to CME Group.
  2. Participants provide position data in DTCC Trade Information Warehouse format.
  3. The migration process is run to group bilateral positions and produce a migrated portfolio through contract substitution
  4. Participants indicate approval of migrated portfolio
  5. Migrated trades and any applicable cash flows are finalized and checked for credit limits and counterparty agreement
  6. New contracts are created facing the CCP
  7. Exit records are created for participants to send to DTCC
  8. Any applicable cash flows are settled

Required Documentation
NDA Agreement
DTCC Agreement

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