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.
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.
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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