Collateral Fees Program

As a follow up to the Advisory Chadv14-393 dated October 6, 2014, below are some additional details related to the Collateral Fees program.

Clearing member collateral fees are based on the performance bond (PB) value of the assets on deposit less the value in excess of the clearing member’s PB requirement.  Clearing members will not incur fees on excess collateral on deposit.  The value of a clearing member’s excess collateral on deposit can be found on the clearing member’s CST610 report.

Asset types subject to new fee schedule:

• Exchange traded funds
• Foreign Sovereign Debt
• Mortgage backed securities
• Stocks
• Treasury Inflation Protection Securities
• U.S. Treasury Securities
• U.S. Government Agency Securities
•  U.S. Treasury STRIPS

Asset Types Subject to Existing Fee Schedule:

• Corporate Bonds
• Gold

Clearing members will receive a daily csv file via ftp denoting the business date, asset account, seg type, account type, asset type, currency, PB requirement amount, custody fee rate, exchange rate of the currency denomination of the asset to USD, excess collateral on deposit and accrued collateral fees.

By the 3rd business day following month end, clearing members will receive a monthly recap report showing the daily balances.

Collateral fees will be charged as a separate line item on clearing members’ clearing related fees invoice on the 25^th day of the month for the previous calendar month’s assets.

For more information or to request changes to your clearing member setup, please contact CME Clearing by email at CHCollateralservices@cmegroup.com.

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