CME SPAN 2 – Framework, Components, and Methodology

  • 3 Sep 2020
  • By CME Group
  • Topics: Clearing

SPAN has been the industry standard for margining for decades. In recent years, the demands on margin methodologies have increased due to the growth in the diversity and complexity of products and the greater need for portfolio and capital efficiency driven by regulatory change.

Watch this short video to learn more about the SPAN 2 margin model components and the new operating tools that CME has developed to accompany the framework. This video includes:

  • SPAN 2 overview
  • Key features of the SPAN 2 methodology
  • In-scope products
  • Risk methodology
  • How the transition to the SPAN 2 framework will be facilitated
  • Margin offsets across legacy SPAN and SPAN 2 and how they will be computed
  • Adoption and tools

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