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

Unless otherwise stated, Equity Option Compression will take place the Tuesday immediately following the third Friday of each month.

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

Compression Cycle Net OI Change Report

View the aggregate net change in open interest by option strike, reflecting the latest multilateral compression cycle on May 25, 2021.

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