Amendments to CME Chapter 8G (“Interest Rate Derivative Clearing)” and Chapter iii (“CME Definitions”) to add recovery tools to the Financial Safeguards Package for End of Waterfall Rules for Interest Rate Swaps - Effective November 6, 2019

Effective Wednesday, November 6, 2019, Chicago Mercantile Exchange Inc. (“CME”) will adopt amendments to Rules in Chapter 8G and the definitions in Chapter iii. The Rule Amendments add the following recovery tools relating to IRS products where default resources have been depleted: (i) portfolio gains haircuts for certain settlement cycles; (ii) mandatory tear-ups in connection with such settlement cycles; (iii) voluntary contributions by IRS Clearing Members (and their customers); and (iv) voluntary tear-ups by IRS Clearing Members (and their customers) (collectively, the “New Recovery Tools”).

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