CHICAGO, March 13, 2012 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced that beginning May 7 it
will offer portfolio margining of over-the-counter interest rate
swap positions and Eurodollar and Treasury Futures for house
accounts. The risk reduction achieved by this program may result in
capital efficiencies of up to 85 percent for certain portfolios,
figures that remain unparalleled in the industry. Later in
the year, the same benefits will be available for customer accounts
pending regulatory approval.
"As an industry leader in both listed derivatives and the OTC
market, CME Clearing offers prudent risk management for all of our
products and services," said Kim
Taylor, President, CME Clearing. "Building on more
than 20 years of cross-margining experience, this new portfolio
margining program will allow us to maintain our rigorous risk
management standards at the same time we provide greater capital
efficiencies and flexibility to those transitioning to OTC
clearing."
"As the deadline for mandatory clearing approaches, clients are
turning to the service providers who can offer the greatest capital
and operational efficiencies," said Michael
Yarian, head of Agency Derivatives Services at Barclays
Capital. "Where our business model focuses on delivering
operational efficiencies across futures execution and clearing, OTC
clearing and FX PB, portfolio margining across OTC products and
futures provides capital efficiencies to our clients. Both
can enhance liquidity by reducing costs. We continue to work
closely with CME Group and other industry participants to create
innovative solutions that will set the benchmark for clients'
expectations."
"Citi recognizes the importance of achieving appropriately
risk-managed capital efficient clearing solutions that reduce the
costs of OTC clearing," said Christopher
Perkins, Global Head of Derivatives Clearing at Citi. "We
welcome this innovation by the CME Group and strongly believe that
many market participants will benefit from this in the near
future."
CME Group operates the leading IRS and CDS clearing solutions by
U.S. customer volume, with over $415
billion in total volume cleared. The company reported
record February volume numbers attributable to more buy side firms
regularly clearing their OTC trades. This also includes customers
who had not previously been actively clearing and are voluntarily
choosing to clear at CME Group ahead of the mandate, with more than
1,300 buy side accounts holding open
interest.
To learn more about CME Group's OTC clearing offering, watch our
latest video or visit our resources on IRS and CDS.
The portfolio margining program has been filed with the
appropriate regulatory authorities and is pending completion of the
regulatory review period.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity indexes,
foreign exchange, energy, agricultural commodities, metals, weather
and real estate. CME Group brings buyers and sellers
together through its CME Globex® electronic trading platform and
its trading facilities in New York
and Chicago. CME Group also operates CME Clearing, one of the
world's leading central counterparty clearing providers, which
offers clearing and settlement services for exchange-traded
contracts, as well as for over-the-counter derivatives transactions
through CME ClearPort®. These products and services ensure that
businesses everywhere can substantially mitigate counterparty
credit risk in both listed and over-the-counter derivatives
markets.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
Globex and Chicago Mercantile Exchange are trademarks of Chicago
Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the
Board of Trade of the City of
Chicago, Inc. NYMEX, New York Mercantile Exchange and
ClearPort are registered trademarks of New York Mercantile
Exchange, Inc. COMEX is a trademark of Commodity Exchange,
Inc. All other trademarks are the property of their
respective owners. Further information about CME Group (NASDAQ:
CME) and its products can be found at www.cmegroup.com.
CME-G
SOURCE CME Group