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Cleared OTC Agricultural Markets Through CME ClearPort

 

Current Product Slate

  Cleared OTC Calendar Swaps
(Asian-style)		 Cleared OTC Bullet Swaps
(European-style)
Corn Available Now — View More Pending*
Wheat Available Now — View More Pending*
Soybeans Available Now — View More Pending*
Soybean Meal Pending* Pending*
Soybean Oil Pending* Pending*
Soybean Board Crush Pending* N/A

*Recently we learned that the CFTC will delay approval of the new cleared OTC agricultural swaps that were announced on Mon., Jan. 23, following a new agricultural swap rule that went into effect on Dec. 31, 2011. Based on CFTC staff’s interpretation of new rules, they have asked the exchange to withdraw its submission. At this stage we’re working closely with CFTC staff to understand their request and determine a new launch date for these products.
Available: Four cleared OTC Fertilizer Swaps on Urea, DAP and UAN.
Learn more now.


About Cleared OTC Agricultural Swaps
Cleared OTC agricultural markets allow you to trade off-exchange through your preferred execution venue, negotiate your own prices, and then come to CME ClearPort to access significant risk management and financial benefits including:

  • Expanded access to flexible, cleared-only risk-management tools when traditional listed markets are unavailable
  • Substantially mitigated risk through post-trade central clearing services
  • Ability to privately negotiate prices and trade off-exchange
  • Reduced capital requirements due to cross-product margin efficiencies
  • Convenience of cash-settled swaps without added costs
  • Versatility to EFRP into or out of a futures position in the underlying market
  • Position accountability through our daily mark-to-market process


About Cleared OTC Calendar (Asian-style) Swaps
Calendar swaps are privately negotiated cleared-only transactions submitted through CME ClearPort. Two parties agree on the specific fixed price component of the swap and the specific calendar month. Depending on the calendar month chosen by the two parties, the daily and final settlement process will be based on the futures contract month closest to (but not before) the negotiated swap month. The variable price component of the cleared-only Calendar Swap will be based on the average daily settlement price of the referenced commodity futures contract during the pre-negotiated month.

About Cleared OTC Bullet (European-style) Swaps
Bullet swaps provide another solution in risk management. Like calendar swaps, the two parties involved in an OTC bullet swap agree on the specific fixed price component and calendar month of the swap. However, the variable price component in a bullet swap is the settlement price of the referenced commodity futures contract on a specific date.

CME ClearPort
CME ClearPort® is a set of flexible clearing services available to OTC market participants to help mitigate risk. With OTC clearing through CME ClearPort, you can conduct business off-exchange - but you gain the advantages of security and efficiency. CME ClearPort uses a central counterparty clearing model, where counterparty credit risk is shared among clearing members, allowing the central clearing house to guarantee the performance of every transaction. Using CME ClearPort reduces the time and expense of documentation and replaces it with real-time trade confirmations and straight-through processing once a contract is cleared. Registering online is free and easy.
 

Resources
CME ClearPort Cleared OTC Swaps
Exchange User License Agreement (EULA)
DEMO: How to Register and Enter Trades through CME ClearPort
Cleared OTC Transactions Regulatory Q&A
EFRP Advisory		 Cleared OTC Grain Swaps Brochure (PDF)
Daily Volume Report (See PG67 Daily Bulletin)
Webinar: Introducing Centrally Cleared Grain Swaps through CME ClearPort)
Swaps White Paper (PDF)
 


For more information, please contact:

Chicago Office
Tim Andriesen
Managing Director
Agricultural Commodities and Alternative Investments
312 930 3301
tim.andriesen@cmegroup.com

London Office
Jeffry Kuijpers
Director
Agricultural Commodities and Alternative Investments
 +44 20 3379 3729
jeffry.kuijpers@cmegroup.com

Chicago Office
Candice Graham
Manager
Agricultural Commodities and Alternative Investments
312 930 3365
candice.graham@cmegroup.com

Singapore Office
Nelson Low
Director
Agricultural Commodities and Alternative Investments
+65 6593 5570
nelson.low@cmegroup.com