CME Clearing accepts letters of credit as collateral from a list of CME approved banks. See below for more information.
Clearing members that wish to post additional LOCs on behalf of qualifying commercial end users may be eligible for a limited exemption from this cap, please email CreditRisk@cmegroup.com.
CME Clearing must receive an amended letter of credit by 3pm CST the business day prior to its expiry date in order for the letter of credit to remain eligible for performance bond credit on its expiry date. An amended letter of credit received by CME Clearing after this deadline is not eligible for performance bond credit on the original expiry date.
Firms with assets exceeding specified limits may incur a true up margin requirement in an amount no less than the USDE amount over the specified limit. Firms will be notified by CME Clearing of the true up requirement amount.
All assets that are utilized to meet PB requirements in different currencies will be subject to an additional cross-currency haircut. For applicable haircuts, please see the Cross-Currency Haircut Percentages file found under Forms and Instructions.