Cleared OTC IRS Standard Fee Schedule

• Affiliates of an existing clearing member may register under either the Standard Customer Fee Schedule or the Standard IRS Clearing Member Fee Schedule. As of February 1, 2022, these accounts will no longer be eligible for the Alternate Customer Fee Schedule.
• Investment Advisors must choose a single fee schedule for all underlying registered accounts.

* Pending all relevant CFTC regulatory review periods and self-certification.

• Charged on all cleared trades (including new, terminations, and backloads)
• There are no transaction fees for transfers
• Clearing fees are billed in the same currency as the swap notional, subject to the below schedule:

• 2.00 per million notional, charged in the same currency as the swap notional
• Maintenance fees are charged annually, on the anniversary date of each line item
  • If that anniversary date is not a valid business day, then the fee will be charged on the next good business day
  • If the swap is maturing within six months of the anniversary, maintenance fee will not be applied
  • Maintenance fees will not be charged for trades which are terminated before the anniversary date

• Fees are applied based what is submitted into blending, no charge on the remnant trades created from blending activity
• 1.00 per million notional, charged in the same currency as the swap notional

Participants using multilateral compression services will be charged 1.00 per million notional (in the currency of the product) based on the trades that are submitted for compression

For Non-Deliverable Swap products (BRL, INR, KRW, CLP, COP, CNY), all four fee types will be assessed in USD using a fixed exchange rate based on the normal schedule per the below table. For example, in BRL a fee of 11.00 per million notional would instead be $2.00 USD per million BRL given the current exchange rate of 5.50.

As of Q4 2022, to ensure that rates are reflective of current market conditions without putting undo burden on operational processes, CME Group will calculate and round the above fixed local exchange rates on a quarterly basis.

• 15 days prior to each new calendar quarter, CME Group will update the above table
• Fixed exchange rates will remain in place for the subsequent calendar quarter
• Clearing Members will be notified of updated exchange rates when quarterly customer volume discounts are calculated

Each calendar quarter, customers on the standard schedule may qualify to receive a fixed discount applicable to base fees for the subsequent calendar quarter on the basis of the USD equivalent base fees incurred during the current quarter. The discount applicable to the following calendar quarter will be calculated on a weighted average basis using the USD equivalent base fees for the current calendar quarter and the discount percentages set forth in the table below.

• Look back period is based on calendar quarters, ending 15 days prior to the beginning of the next quarter
• New Discount percentage becomes effective on the first business day of each calendar quarter

• Single Beneficial Account Owner Schedule applies to customers with one or many accounts all with the same beneficial account owner
• Multiple Accounts schedule applies to an Investment Manager who manages many accounts with different beneficial account owners

Example Calculation:

• Customer incurs $100,000 in fees during Q1
• There is no discount on the first $75k, and a 15% discount on the $25k in fees that falls between $75,000 and $100,000
• This amounts to a discount of $3,750 on $100,000 in fees: flat discount for Q2 is 4%

Customers may elect to be subject to an alternate fee schedule:

• A $25.00 per ticket fee
• Monthly charge of Fifteen (15) basis points annualized on the client’s initial margin requirement (360 day count)
• No volume discount offered on the alternate fee schedule
• A charge of $50.00 per ticket for line items submitted to coupon blending
• A $50.00 per line item fee for multilateral compression services

Election of the alternative fee schedule requires notice to CME which must be given (i) during the firm’s onboarding process, or (ii) at least fifteen (15) days prior to a calendar month that the firm elects to receive the alternative fee schedule. Provide notice to OTCFees@cmegroup.com

• Charged on all cleared trades (including new, terminations, and backloads)
• There are no transaction fees for transfers.
• Clearing fees are billed in the same currency as the swap notional, subject to the below schedule:

• For standard fee schedule clients, the $2.00 per trade annual maintenance fee and all quarterly volume discounts will apply to all swaptions activity.
• Upon exercise/assignment, each party will pay their standard clearing fee for the interest rate swap that results from exercise. There is no additional surcharge for exercise/assignment
• There are no charges for abandonment of a swaption.
• Each leg of a straddle is charged a fee, regardless of whether they are traded as a single line item or as two separate line items

• Clients on the alternate fee schedule for swaps will also be on the alternate fee schedule for options. A client’s fee schedule selection must be the same for swaps and swaptions.
• Customers on the high turnover schedule will incur a $100.00 per ticket fee for swaptions.
• The monthly charge of 10 basis points on the client’s initial margin applies to the entire portfolio.

With respect to fees for the conversion of legacy cleared swaps to risk-free benchmarks, CME intends to charge a fee of $50 per line item for conversion. This fee will be charged on the resulting RFR trades with the exception of single unit trades booked for the specific purposes of preserving additional payments, which will not be charged. The same $50 fee applies to the Customer Fee Schedule and the Alternate Fee Schedule.

Note: for bilateral swaption exercises that result in a cleared swap indexed to a legacy benchmark, CME will conduct a daily conversion of these trades to the respective RFR rate. A charge of $50 per converted trade will be applied to the position in addition to the new trade clearing fees.