CME Equity Options Compression Overview

CME Group is offering a multi-lateral post-trade Equity option compression service. The intent of this service is to provide market participants and their FCMs with capital relief in listed Equity options without materially changing the risk exposure of a given participant’s portfolio. This approach is designed to increase liquidity across the Equity option complex and minimize the impact of Basel III capital requirements on clients and clearing members by reducing the amount of open interest held by participants.

Participant Eligibility

To participate in a given compression cycle, participants will need to meet a set of eligibility criteria. These requirements will consist of demonstrating operational capability to participate, as well as meeting portfolio- and volume-sizing standards. Additionally, participants will be required to sign a compression services agreement and to obtain FCM approval.

Upcoming Compression Cycles

Following our eight successful compression runs that have reduced over 2.7 million contract sides, our compression service will be offered on the following dates: .

  1. May 21: May multi-lateral cycle
    May 22: Production cycle fallback date
  2. June 25: June multi-lateral cycle
    June 26: Production cycle fallback date

To participate, reach out to our team by completing the form below.

Compression Cycle Net OI Change report

This report provides aggregate net change in open interest by option strike following the latest compression cycle:

Useful Information

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To learn more, view our frequently asked questions or contact us by filling out this form.

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