Effective on December 30, 2024, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME”), in its capacities as both a designated contract market (“DCM”) and a derivatives clearing organization (“DCO” or “CME Clearing”), The Board of Trade of the City of Chicago, Inc. (“CBOT”), New York Mercantile Exchange, Inc. (“NYMEX”) and Commodity Exchange, Inc. (“COMEX”) in their capacities as DCMs, (each an “Exchange” and collectively, the “Exchanges”) are adopting amendments to the Exchanges’ Chapter iii (“Definitions”), Chapter 8 (“Clearing House and Performance Bonds”) and CME Chapter 8G (“Interest Rate Derivative Clearing”) (collectively, the “Rule Amendments”).

The Rule Amendments remove unnecessary legacy language and align descriptions of certain default management processes with existing practices. For example, the Rule Amendments eliminate the concept of Base Guaranty Fund “tranches,” which had been introduced prior to launching swaps clearing services for credit default swaps and interest rate swaps (“IRS”) under separate financial safeguards waterfalls. The Base Guaranty Fund contributions have never been allocated into tranches and there is no continuing purpose for the tranche framework described in Rule 802, particularly with the ongoing separation between the IRS and Base financial safeguards waterfalls. Additionally, the Rule Amendments align with CME Clearing’s current practices with respect to the roles of Clearing House Risk Committee and Board, as well reflect some clarifying amendments.