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Corn Swaps Through CME ClearPort

Corn Calendar Swap
Eastern Nebraska Basis Swap
Eastern South Dakota Basis Swap
Northeastern Iowa Basis Swap
Northwestern Iowa Basis Swap
Southern Iowa Basis Swap
Southern Minnesota

To view Daily Volume Report, see PG67 OTC Futures of the Daily Bulletin

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

Resources
Swaps White Paper (PDF)
Calendar Swap Rules (PDF)
Corn Basis Swap Rules (PDF)
Basis Contract Settlements (XLS)


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.

For more information, please contact:

Chicago Office
Brenda Tucker
Associate Director
CME Group Products and Services
312-930-8304
brenda.tucker@cmegroup.com

London Office
Jeffry Kuijpers
Associate Director
Commodity/Alt. Investment Products
011 (44) 207-796-7108
jeffry.kuijpers@cmegroup.com

Chicago Office
Rich Jelinek
Associate Director
CME Group Products and Services
312-930-2320
richard.jelinek@cmegroup.com

Singapore Office
Nelson Low
Director
Commodity Products Asia
11-656-550-9621
nelson.low@cmegroup.com