Cleared Interest Rate Swaptions

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First Swaption Cleared On April 11, 2016

With strong support from buy- and sell-side market participants, CME Group launched interest rate swaptions on April 11. The initial product scope includes U.S. dollar-denominated interest rate swaptions with European-style exercise, a maximum 2-year option expiry and a maximum underlying swap tenor of 30 years.

CME now has seven approved swaptions clearing members, with the addition of two new members since August. We continue working to transform the swap clearing landscape by working with clearing members, liquidity providers and buy side clients to further expand the participant base for both client cleared and interdealer swaptions

Clearing Swaptions Amplifies our Unparalleled Capital Efficiencies

  • Voluntary clearing allows market participants the flexibility to reduce the risk of their cleared IRS portfolios

  • Margin offsets of up to 91% possible with cleared IRS when included in swap portfolios

  • Portfolio margining with our cleared IRS and Eurodollar, Treasury, and MAC Swap Futures

  • Reduces bilateral counterparty credit risk and frees up credit lines

  • Improves Capital Ratios, lowering capital charges that could ultimately be passed on to end users

Contact Us

For questions or information about the new cleared Swaptions offering:

North America

Senior Director, OTC Product Solutions
Deepa Josyula
+1 212 299 2368

Director, OTC Product Solutions
Liam Smith
+1 312 207 2538

Manager, OTC Products
Shawn Creighton
+1 312 634 8812

Europe

Senior Director, OTC Product Solutions
Phil Hermon
+44 20 3379 3983

Director, OTC Product Solutions
Stephanie Hicks
+44 20 3379 3867