This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

CME Group Extends Portfolio Margining For OTC Interest Rate Swaps And Futures To Customer Accounts

Stocks in this article: CME

CHICAGO, Oct. 16, 2012 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced it received regulatory approval to begin offering portfolio margining of over-the-counter interest rate swap positions and Eurodollar and Treasury Futures for customer accounts on November 19, 2012. CME Group will continue to work with clearing members on their readiness to deliver this efficiency to market participants.

The risk reduction achieved by this program may result in significant capital efficiencies for certain portfolios.  Earlier this year, the same benefits were made available for house accounts, which clearing members are using to reduce risk posed to CME Clearing and to significantly reduce their initial margin requirements.

"As part of our industry leading risk management framework, CME Group believes in recognizing economic risk offsets where they legitimately exist – allowing market users to capture the efficiencies associated with trading related products at a single clearing house," said Kim Taylor, President, CME Clearing. "We are pleased to offer cross-margining (risk offsets) between our OTC rates swaps and our rates futures.  This will help end users take advantage of the benefits of central clearing while also helping them manage their capital costs."

"We worked with buy side clients to develop innovative and efficient risk management solutions that work for them such as portfolio margining, Deliverable Swap Futures and real-time clearing," said Laurent Paulhac, Senior Managing Director, CME Group, OTC Products & Services. "Because of CME Clearing's ability to clear IRS, CDS, FX and Commodity spreads, we have the unique opportunity to offer unparalleled capital efficiencies and our customer's potential margins savings are quite compelling."



"CME Group's ability to extend portfolio margining to additional products is an important step forward for the marketplace," said Bob Burke, Global Head of OTC Clearing, BofA Merrill Lynch. "We expect to be able to provide this enhanced capability to our clients in the coming months, enabling them to capture significant savings on their initial margin."



1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs