Commodity Products

Corn Swaps Through CME ClearPort

Corn Swaps through CME ClearPort address the need to hedge basis risk in the increasingly volatile grain and oilseed markets. They offer OTC market participants the benefits and financial safeguards of central clearing in addition to the flexibility of being able to use a variety of interfaces and platforms to access the CME ClearPort Web interface. They enhance risk management practices by enabling market users to create tailored hedges in a centrally cleared environment.

Benefits

  • Financial integrity of CME Clearing virtually eliminating third party credit risk
  • Flexibility of privately negotiated swap contract terms
  • Reduced capital requirements due to cross product margin efficiencies
  • Easy and accessible use of CME ClearPort services – limited and straightforward registration documentation*
  • Position accountability through our daily mark to market process

*CME Group cleared only Grain Swaps eliminate the need for costly and time consuming ISDA documentation

About Basis Swaps

Corn Basis Swaps are tools to help the grain industry better manage overall risk. The swaps also help buyers and sellers manage the risk of price differentials between futures delivery points and local markets. They are cleared-only OTC transactions and are not substituted into a futures contract.  

About Calendar Swaps

Corn Calendar Swaps are based on the average daily settlement price for the corresponding underlying futures contract during the final month of clearing the swap. They offer a way to manage price volatility. They are cleared-only OTC transactions and are not substituted into a futures contract.

About CME ClearPort

CME ClearPort is a set of flexible clearing services open to OTC market participants to eliminate third-party credit risk and provide capital efficiencies across a wide range of asset classes. Hundreds of thousands of transactions are cleared through it each day. Market participants have unparalleled flexibility to conduct their own transactions off-exchange and negotiate their own prices while benefiting from central counterparty clearing.

To submit transactions through CME ClearPort, customers must complete a registration form and user's license.