Overview
CME Clearing may invest the cash it receives from its clearing members. Cash that is invested is done so in accordance with CFTC regulations and CME Clearing’s investment policy. CME Clearing employs a prudent investment policy with the goals of:
- Safeguarding collateral posted by clearing members;
- Establishing guidelines for investments that are designed to minimize the risk of loss and delay in access to collateral; and
- Supporting CME Clearing in effectively supervising, monitoring and evaluating the management of CME Clearing’s investments.
Eligible investments
U.S. Dollar cash may be invested in U.S. Treasury securities and U.S. government agency securities, as well as reverse repurchase agreements for these securities, and U.S. government money market mutual funds. Under CME Clearing’s investment policy, the maximum maturity for any U.S. investment security cannot exceed 2 years. Additionally, Euro cash may be invested into select Euro-denominated French and German sovereign debt, as well as related reverse repurchase agreements. Generally, the weighted average maturity of CME Clearing’s overall investment portfolio is less than 30-days.
Value at risk of investment portfolio
CME Clearing did not purchase any securities for the investment portfolio in 2022.
CONTINUE READING
- Settlement
- CME Clearing Financial Safeguards Waterfall
- CME Clearing Stress Testing Practices
- CME Clearing Liquidity Risk Management Practices
- Counterparty Credit Risk
- Default Management
- Delivery
- CME Clearing Performance Bond Practices
- Customer Protection and Segregation
- Customer Margining at CME Clearing
- Collateral
- Governance
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
