Clearing Interfaces for OTC Derivatives and Exchange Traded Derivatives

CME Clearing Europe offers integrated, straight-through clearing via CME ClearPort for both OTC commodity and financial derivatives and block trades in exchange traded derivatives on CME Europe. We also provide straight-through clearing via CME Globex for exchange traded derivatives on CME Europe.

OTC financial derivative trades can also be entered via a variety of widely used affirmation platforms. In addition, CME Direct can be used for routing OTC commodity and financial trades or trading exchange traded derivatives on CME Europe, for clearing at CME Clearing Europe.

We provide users with a wide range of clearing functions and data applications, including:

  • front end clearing (FEC), providing clearing member firm back office staff with an integrated method for entering and processing a variety of trade types
  • give-up payment system, offering real-time fee calculation and automatic payment processing for member firm give-up execution business plus the online viewing of transactions
  • real-time position management system, providing full visibility of cleared positions
  • settlement and asset management system, giving complete access to settlement information and details of collateral lodged.

CME ClearPort

OTC commodity and financial derivatives can be entered for clearing at CME Clearing Europe through CME ClearPort.

CME ClearPort can also be used to enter block trades in exchange traded derivatives on CME Europe for clearing at CME Clearing Europe.

CME ClearPort is the point of entry to clearing at CME Clearing US for more than 700,000 contracts daily and brings together more than 17,000 registered users around the world. It is the clearing entry mechanism of choice for commercial, banking, investment, and trading entities, as well as inter-dealer brokers and clearing firms. As the entry point to clearing, CME ClearPort helps customers to:

  • continue to execute bilaterally but with the advantages of security, efficiency and confidence
  • mitigate counterparty risk
  • obtain market neutral settlement prices for clearing trades.

Transactions submitted for clearing through CME ClearPort benefit from pre-execution risk controls. These allow clearing members to control the creation of accounts, permission tradable products, set position limits and establish an overall initial margin requirement limit. The controls are designed to function as collective risk protection: giving risk assurance to clearing members and their clients, as well as to CME Clearing Europe.

CME ClearPort is available as a graphical user interface (GUI) and an applications programming interface (API). Its web-based GUI enables OTC market participants to submit matched trades for clearing. They can conduct their own transactions and take advantage of the financial security of clearing through the CME Clearing Europe by using CME ClearPort.

The CME ClearPort API offers a robust specification for defining reference data, handling trade submissions and allowing users to obtain feedback on submissions. Clients can take advantage of new CME ClearPort functionality and features through the API.

Trading firms and brokers who already use CME ClearPort to enter trades into CME Clearing in the US can request to have their logins updated so they can also access CME Clearing Europe products.

How CME ClearPort Works

  • 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 Europe (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 ClearPort
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CME Direct

CME Clearing Europe's clearing services for OTC commodity and financial derivatives will offer an execution agnostic, open access clearing solution to both buy-side and sell-side participants, providing dealer-to-dealer, dealer-to-client, and client-to-client clearing, irrespective of where the trade is executed.

In addition, CME Direct, our free web-based trading screen, provides an easy and simplified way to trade on CME Europe, our new London-based derivatives exchange, by connecting to both CME Globex and CME ClearPort.

To find out more about trading on CME Europe, please visit www.cmeeurope.com/trading

CME Direct will enable users to:

  • negotiate, execute and submit trades to CME Clearing Europe through multiple venues
  • conduct straight-through processing and receive real-time confirmation once the trade is cleared
  • protect the confidentiality of trading relationships, while being able to terminate positions with any market participant
  • benefit from the operational flexibility of a multi-asset class solution via one clearing house.

Request a Demo

Learn more about CME Direct and request a test login

Request a Demo

CME Globex

Electronic trades on CME Europe will take place on CME Globex, our electronic trading system for futures and options.

CME Globex offers a wide range of futures and options in thousands of possible expirations and spreads, including interest rates, equity indexes, foreign exchange, agricultural commodities, energy, metals, weather, real estate and environmental commodities.

Customers are able to connect via existing channels if they are already members of CME Group, or choose a new connection route. For Block and EFRP trades, CME ClearPort will bring these trades under the rules of CME Europe and CME Clearing Europe for clearing.

Participants have the choice of direct access though one of our global hubs, co-location, via one of our Clearing Members, or through an independent service vendor (ISV).

CME Direct, our free web-based trading screen, provides an easy and simplified way to trade on CME Europe by connecting to both CME Globex and CME ClearPort.

With global distribution and international hubs, CME Globex offers trading around the globe and around the clock.

CME Globex offers customers:

  • Streamlined development efforts
  • Single source for production customer support
  • Access to free risk management tools
  • More efficient access to real-time market data
  • 10-deep futures and 3-deep options for most markets
  • High-speed, high-volume capacity
  • Improved options capabilities and a range of new products

Affirmation Platforms

The two execution counterparties will negotiate and execute the trade. Matched trades will be entered into the clearing process through several market-leading affirmation platforms and electronic execution facilities, including:

  • Bloomberg VCON
  • MarkitSERV
  • TradeWeb.

Alternatively, trade entry through CME ClearPort, available as a GUI and an API, will also be possible. Trades will be guaranteed by CME Clearing Europe once accepted by the clearing members of the executing parties.

Clearing Services for OTC Financial Derivatives

  • Negotiate, execute and submit trades through multiple venues to CME Clearing Europe.
  • Straight through processing and real-time confirmation once the trade is cleared.
  • Protects the confidentiality of trading relationships, whilst enabling customers to terminate positions with any market participant.

CME Open access clearing solution