On January 24, 2014, CME Clearing notified Clearing Member Firms of its plan to limit the collateral types available for the CME Clearing guaranty funds to USD cash and U.S. Treasury Bills/Notes/Bonds* via Clearing Advisory Notice 14-041. As noted in that advisory, these changes are designed to allow CME Clearing to better comply with the liquidity requirements of CFTC Regulation 39.33. However, CME Clearing has decided to extend the deadline for the changes to April 14, 2014, in light of the flexibility provided by the CFTC’s ongoing no-action relief from the requirements of Regulation 39.33 from the CFTC, as well as to allow Clearing Member Firms an additional window to comply with the new requirements.
Please note that these changes will apply to all CME Clearing guaranty funds as of April 14, 2014, pending regulatory review, but will not be applicable to any guaranty fund for security-based swaps without approval from the Securities & Exchange Commission.
For more information, please contact CME Clearing Financial Unit at 312-207-2594 or CME Clearing Risk Unit at 312-648-3888.
* (Time to maturity not to exceed 10 years)
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