• Change in Interest Rate on Customer Segregated, House (Products in Base Waterfall) and Guaranty Fund USD Cash Balances

      • To
      • Clearing Member Firms; Chief Financial Officers; Back Office Managers; Margin Managers
      • From
      • CME Clearing
      • #
      • 18-122
      • Notice Date
      • 21 March 2018
      • Effective Date
      • 22 March 2018
    • Effective March 22nd, 2018, CME Clearing will increase the interest rate paid on USD cash balances on deposit by clearing members accordingly:

      • The interest rate paid on USD cash balances on deposit by clearing members to meet customer and house (proprietary) performance bond requirements associated with products in the Base waterfall will be increased from the current rate of 121 basis points to 144 basis points.
      • The interest rate paid on USD cash balances on deposit by clearing members to meet guaranty fund requirements associated with products in the Base waterfall and the OTC IRS waterfall will be increased from the current rate of 110 basis points to 133 basis points.

      The interest rate paid on USD cash balances on deposit by clearing members to meet customer and house (proprietary) performance bond requirements associated with products in the OTC IRS waterfall will continue to be based on the benchmark formula of the Fed Funds Effective Rate minus 10 basis points.

      The rate paid will be available daily on the following link and is subject to change, based on market conditions:

      http://www.cmegroup.com/clearing/financial-and-collateral-management/acceptable-collateral-for-cash.html

      The monthly USD interest payment will continue to occur during the first week of the following month.

      For more information, please contact CME Clearing at 312-207-2594.

      For the full text of the advisory, click here

      18-122