Chicago Mercantile Exchange
Clearing House Advisory Notice
99-107
December 6, 1999
To: Clearing Member Firms
Chief Financial Officers
Back Office Managers
From: CME Clearing House
Subject: New Pass-Through Letter of Credit Format
On Tuesday, November 30, 1999, the CME Performance Bond
Committee approved a new pass-through letter of credit format for use at the
CME. The new pass-through letter of
credit format, a copy of which is attached for informational purposes, is
patterned after the industry standard letter of credit format developed by the
Unified Clearing Group (“UCG”). This
new letter of credit format should be utilized for any new letter of credit that your firm intends to post to the CME in
satisfaction of performance bond requirements on or after January 3, 2000.
The new pass-through letter of credit format differs from
the UCG standard letter of credit format in two principal respects. First, the pass-through letter of credit
format provides for joint beneficiaries (see cover page). Second, sections 5 and 6 (and associated
exhibits) of the UCG standard letter of credit format, which concern
transferability, have been eliminated from the new pass-through letter of
credit format.
Also attached is a two-page set of “Instructions”, which pertains primarily to how the cover page of the pass-through letter of credit should be executed, so as to be in compliance with CME requirements.
Questions concerning any of the above can be addressed to Mr. Tim Golomb, Financial Manager, at 312-930-3194, or to Ms. Dora De La Paz, Financial Project Manager, at 312-930-3171.
Please see the Irrevocable Standby Letter of Credit and The Instructions PDF files. You need to have Adobe acrobat reader to be able to view it and print it. Log on to this website to download Adobe Reader free.