• Revision to CME Capital Requirements

      • To
      • Chief Financial Officers, Chief Compliance Officers
      • From
      • Audit Department, Clearing House Division
      • #
      • AIB 08-04
      • Notice Date
      • 02 October 2008
      • Effective Date
      • 02 October 2008
    • In conjunction with the harmonization of various rules and requirements with New York Mercantile Exchange, Inc., CME Group Inc. recently approved an increase in the minimum dollar capital requirement of Chicago Mercantile Exchange Inc. and Chicago Board of Trade, Inc. clearing members to $5,000,000 from $2,500,000. In order to allow time for clearing members to comply, this increase will become effective January 1, 2009.
      The revised capital requirements will require all clearing members as of January 1, 2009 to maintain adjusted net capital in excess of the greatest of:
      1.    $5,000,000 or;
      2.    8% of domestic and foreign domiciled customer and 4% of noncustomer (excluding proprietary) risk maintenance margin/performance bond requirements for all domestic and foreign futures and options on futures contracts excluding the risk margin associated with naked long option positions or;
      3.    CFTC minimum regulatory capital requirements or;
      4.    SEC minimum regulatory capital requirements.
      Clearing members are responsible for monitoring their capital and ensuring continued compliance with CME Group Inc. capital requirements. If you have any questions, please call the Audit Department at (312) 930-3230.