• Interest paid on US Dollar (USD) cash balances held at CME Inc. to meet Clearing Member Proprietary (House) Initial Margin Requirements

      • To
      • Clearing Member Firms
      • From
      • CME Clearing
      • #
      • 16-458
      • Notice Date
      • 31 October 2016
      • Effective Date
      • 14 November 2016
    • CME Inc. recently received notice that its Reserve Bank account with the Federal Reserve Bank of Chicago (the “Chicago Fed”) has been opened. The current authorization is limited to clearing member proprietary initial margin (performance bond).

      As of November 14, 2016, CME will move a portion of the clearing member proprietary initial margin cash balances from its existing commercial depositories to the Chicago Fed.  On and after that date, CME will pay an interest rate of 40 basis points per annum on overall clearing member proprietary initial margin cash balances.

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