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