Effective May 1, 2011, amendments to CME, CBOT and NYMEX Rule 970 ("Financial Requirements") and Rule 972 ("Reduction in Capital") will be adopted and become effective. The revisions outline the capital and notification requirements of banks which may become clearing members of CME, CBOT, NYMEX and/or COMEX for their own proprietary and/or affiliate trading activity of Exchange traded products. As adopted, the rules will require a bank which is a clearing member to maintain Tier I Capital (as defined in accordance with the regulation applicable to the bank) of at least $5 billion. In addition, a bank clearing member would be required to notify the Exchanges if its Tier I Capital decreased by more than 20% from the Tier I Capital most recently reported to the Exchange.
For the full Special Executive Report, please click here (PDF).