Eurodollar options now live in IRS Portfolio Margining

Up to 83% in margin efficiencies with cleared swaps

With mounting focus on margin and capital costs, clients are seeking to maximize margin efficiencies across their portfolios. Based on strong client demand, we are excited to announce that listed Eurodollar options have been added into IRS Portfolio Margining alongside CME Interest Rate futures and cleared OTC swaps products.

“Morgan Stanley is excited to support our clients by expanding our portfolio margin offering to include Eurodollar options with Interest Rate futures and cleared swaps. With clients very focused on margin costs, this is an important enhancement for the marketplace.”
— Jason Swankoski, Co-head of Derivatives Clearing Americas

With the addition of Eurodollar options into CME portfolio margining, customers can further benefit from capital efficiencies that cross margining provides, now inclusive of options strategies and portfolios.

As of October 2020, CME Group saw the highest single account initial margin savings of 96%, highlighting the efficiencies of cross margining benefits customers can achieve across listed and OTC products.

More on capital efficiencies

The potential savings discussed above are examples used for illustrative purposes, and are not intended as a guarantee of actual savings. Individual savings will vary based on each market participant’s unique portfolio and risk exposure.

Committed to a broad expansion of portfolio margining eligible products

Over the past year, CME Group has been committed to expanding the number of portfolio margining eligible products, which helped participants save a record $7 billion in margin savings.

To analyze a portfolio or understand how portfolio margining can benefit your firm, contact the OTC team.

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About CME Group

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy.

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