The CME accepts shares of certain equity stocks for customer & house segregated performance bond collateral. The CME�s Repo account number at DTC for customer segregated stock activity is 858, while the CME�s house non-segregated origin Repo account number is 059.  The CME implemented its Stock Program to enable clearing members to post shares of selected stock with the Clearing House to satisfy reserve performance bond requirements.  Effective with the implementation of concentration performance bond requirements on January 19, 2001, clearing members will be able to post shares of selected stocks satisfy concentration performance bond requirement. With three-tiered performance bond requirements, the total performance bond requirement consists of three amounts.  The CORE performance bond requirement represents that portion of the total performance bond requirement, which must be satisfied using the most liquid forms of collateral.  Core collateral includes all types of collateral currently accepted, recognizing the current restriction on the use of Letters of Credit and U.S. Government Agency securities whereby a clearing member may meet the first five million dollars of its core requirement and 50% of the remainder of the core requirement using letters of credit and U.S. Government Agencies.  RESERVE and CONCENTRATION performance bond requirements are set from time to time by the board and are equal to that portion of the total performance bond requirement, which may be met using reserve collateral.  Reserve collateral includes all core collateral plus shares of stock eligible for the Stock Program.  There also is no limitation on the amount of letters of credit or U.S. Government Agencies used to satisfy the reserve performance bond requirements.

Currently, the clearing level performance bond requirement in the S&P Stock Index Futures are displayed below: 

3rd QUARTER, 2003 STOCKS as PB COLLATERAL

Official Stock Pledge

See also Financial Unit Home Page