Clearing

CME Group provides clearing services for customers around the globe through our clearinghouse, CME Clearing, which allows you to significantly mitigate and manage your risk.

CME Clearing is an intermediary between buyers and sellers in the derivatives market. As the intermediary, or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every trade.

By acting as the counterparty for every trade, CME Clearing helps you mitigate counterparty risk by maintaining a matched book and risk-neutral position. You do not have to worry about the other end of your trade falling through, because CME Clearing is always on the other end.

Benefits of a centrally cleared environment:

• Transparency: Of market pricing, market metrics, risk management practices, and financial safeguards
• Neutrality: Neutral party to every transaction; neutral risk management standards
• Security: Performance bond system to secure positions and mitigate risk ex-ante
• Daily mark-to-market of cleared positions to remove risk ex-post