Performance Bond Category Changes

On January 24, 2014, CME Clearing notified Clearing Member Firms of its plan to amend the categorization and limits for some types of collateral eligible to meet performance bond requirements via Clearing Advisory Notice 14-040.  As noted in that advisory, these changes are designed to allow CME Clearing to better comply with the liquidity requirements of CFTC Regulation 39.33.  However, CME Clearing has decided to extend the deadline for the changes to April 14, 2014, in light of the flexibility provided by the CFTC’s ongoing no-action relief from the requirements of Regulation 39.33 from the CFTC, as well as to allow Clearing Member Firms an additional window to comply with the new requirements.

For the full text of this advisory, please click here.