Collateral Program Enhancements
CME has expanded the types of collateral that it accepts as performance bonds (margin) on its futures and options on futures. In addition, CME has established a global custody relationship with Citibank N.A. to act as custody agent for the new collateral types.
"The CME Clearing House continues to develop its collateral management products and services, consistent with its prudent financial safeguards and client demand. Acceptance of sovereign debt from France, Germany and the United Kingdom definitely meets both of these objectives. Additionally, we are excited to have the opportunity to establish a custodial relationship with Citibank," said Tim Doar, Director, Financial Management.
"Reflecting the growth in our customer base outside the United States, we now will accept as collateral the sovereign debt of France, Germany and the United Kingdom, in addition to collateral from the United States and Canada," said Mark Blundell, Managing Director, CME Europe. "Our goal is to make it more convenient for our customers to trade on CME."
Among the new types of collateral to be accepted by the CME Clearing House:
- BTF, BTAN and OAT (France)
- Bubills, Schätze, Bobls and Bunds (Germany)
- Conventional and Index-Linked Gilts (United Kingdom)
CME has launched a multi-lingual Internet Resource Center designed to specifically meet the needs of its German, French, Spanish and Italian-speaking customers. A link to the new CME multi-lingual Web site is available on CME's home page at www.cme.com, or directly at www.cme.com/international.
"CME is experiencing ever-growing business volume and inquiries from potential new customers located around the world, particularly in Europe," said Blundell. "We have instituted this site to provide key information to them in their own languages, including important facts about CME electronic trading and products."
Chicago Mercantile Exchange Inc. (www.cme.com) is the largest futures exchange in the United States. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX® electronic trading platform. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.4 billion per day in settlement payments in the first 11 months of 2003 and managed $34.1 billion in collateral deposits at Nov. 30, 2003. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE: CME), which is part of the Russell 1000® Index.
