CME Clearing
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ALSO SEE: CME Group
CME Clearing is the CME Group's central futures clearing facility, which settles all trades and acts as the counterparty between buyers and sellers, thus virtually guaranteeing the creditworthiness of every transaction. CME Clearing monitors and processes more than one billion trades each year, worth more than $1,000 trillion, and stands behind the financial integrity of each transaction. [1] In its history, CME Clearing has never experienced a default.
CME Clearing puts buyers together with sellers through a number of venues, including the CME Globex electronic trading platform, open outcry trading facilities in Chicago and New York, cleared privately negotiated transactions, and an array of clearing services offered through CME ClearPort. CME Clearing serves as the counterparty to every trade, becoming the buyer to each seller and the seller to each buyer, in order to limit credit risk and therefore mitigate the risk of default.
CME Clearing encompasses a number of subsidiaries and additions, including:
- CME Clearing Europe, a London-based wholly-owned subsidiary of CME Group, clears more than 200 OTC products and handles OTC contracts including: energy, agriculture, freight and precious metals, with plans to include OTC financial derivatives. The move to launch CME Clearing Europe stemmed largely from the European Market Infrastructure Regulation (EMIR) which is due to start in 2013 and force mandatory clearing of OTC trades.
- CME Clearing360 offers central clearing for specially designated over-the-counter trades.
- CME Clearport (formerly NYMEX ClearPort) is a set of clearing services open to OTC market participants. The services are designed to help customers mitigate counterparty credit risk.
- CME SPAN
Key People
Kimberly S. Taylor is president of CME Clearing.
References
- ↑ CME Group Clearing. CME Group.
