News Release

CME Group to Clear S&P GSCI Index Commodity Swaps Through CME ClearPort

Wed Mar 04 2009

CHICAGO, March 4 /PRNewswire-FirstCall/ -- CME Group, the world's largest and most diverse derivatives exchange, has signed a licensing agreement with Standard & Poor's, the world's foremost independent provider of indexes and data, to clear swaps on the S&P GSCI™ Excess Return Index. The S&P GSCI is the most closely followed benchmark for investment performance in the commodity markets.

 

The over-the-counter (OTC) product based on the index calculated by Standard & Poor's will be accessible via CME ClearPort®, an open clearing service for more than 600 products, scheduled to begin on March 16 following certification to the Commodity Futures Trading Commission.

 

"In this environment of financial uncertainty, more and more customers are looking at the benefits available in a centralized clearing solution to manage counterparty risks," said Rick Redding, CME Group Managing Director of Products and Services. "This is one of many examples of our efforts to extend the benefits of CME ClearPort to new products and asset classes."

 

"The S&P GSCI is clearly the leading barometer for investment performance in the commodity markets," said Alex Matturri, Executive Managing Director for Standard & Poor's Index Services. "Standard & Poor's is excited to bring additional flexibility to the marketplace by licensing this closely followed benchmark to our longtime exchange partner, CME Group."

 

Index customers have traditionally used CME Group futures and options contracts on grains, livestock, energy and metals to hedge the corresponding components of commodity indexes. With CME Clearing acting as the counterparty to every transaction, the risk of a third party credit default is virtually eliminated.

 

About CME Group

CME Group (www.cmegroup.com) is the world's largest and most diverse derivatives exchange. Building on the heritage of CME, CBOT and NYMEX, CME Group serves the risk management needs of customers around the globe. As an international marketplace, CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on trading floors in Chicago and New York. By acting as the buyer to every seller and the seller to every buyer, CME Clearing virtually eliminates counterparty credit risk. CME Clearing also offers financial safeguards to help mitigate systemic risk, providing the security and confidence market participants need to operate, invest and grow. CME Group offers the widest range of benchmark products available across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, and alternative investment products such as weather and real estate. CME Group is listed on NASDAQ under the symbol "CME."

 

About Standard & Poor's

Standard & Poor's, a division of The McGraw-Hill Companies , is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com.

 

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago. NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group and its products can be found at www.cmegroup.com.

CME-G

SOURCE: CME Group

Web site: http://www.cme.com/

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