Get the free CME Over-The-Counter Derivatives Clearing Membership Handbook

This handbook is designed to familiarize applicants with the requirements for Chicago Mercantile Exchange Inc. (CME) Over-the-Counter (OTC) Derivatives Clearing Membership and to assist them in becoming

How to fill out cme over-form-counter derivatives clearing

How to fill out CME Over-The-Counter Derivatives Clearing Membership Handbook

1. Obtain a copy of the CME Over-The-Counter Derivatives Clearing Membership Handbook from the CME Group website or through your firm.
2. Review the eligibility requirements for membership outlined in the handbook.
3. Complete the application form provided in the handbook, ensuring all necessary information is included.
4. Gather required documentation, such as financial statements and compliance reviews, as stated in the handbook.
5. Submit the application along with the necessary documents to the CME membership team.
6. Prepare for an interview or review process with CME representatives if required.
7. Await confirmation of your membership status and any additional steps needed before you can start clearing OTC derivatives.

Who needs CME Over-The-Counter Derivatives Clearing Membership Handbook?

1. Financial institutions looking to trade over-the-counter derivatives.
2. Companies aiming to mitigate counterparty risk through clearing services.
3. Traders and firms engaged in derivative transactions that require standardized clearing processes.
4. New entrants to the derivatives market seeking credibility and safety through CME membership.

People Also Ask about

What is CME clearing?

CME Group provides clearing services for customers around the globe through our clearinghouse, CME Clearing, which enables market participants to significantly mitigate and manage their risk exposures. A clearing house, like CME Clearing, is an intermediary between buyers and sellers in the derivatives market.

What is the difference between futures commission merchant and clearing member?

In the US, clearing members are known as futures commission merchants (FCMs). The clearing member assumes financial responsibility for the trades, and posts initial and variation margin to the CCP – in the case of client trades, the member collects the margin from the customer.

Who clears Cme trade?

Clearing Firms Clearing FirmCMECOMEX Deutsche Bank Securities Inc. 092 092 Direct Access USA LLC 226 226 Dorman Trading, L.L.C. 152 152 DRW Execution Services, LLC 927 66 more rows

What is a CME member?

Individual membership at CME enables the member to trade CME products at discounted rates, in the division of membership held.

What does a clearing member do?

Clearing Member means a member of the Clearing Corporation who clears and settles deals through the Clearing Corporation. The Clearing Member clears and settles deals for a segment in a manner and mode and subject to such terms and conditions and procedures prescribed for them.

How does OTC derivatives clearing work?

After the counterparties have agreed to enter into an OTC derivatives transaction, the CCP becomes the buyer to every seller and the seller to every buyer. This means that the two parties entering into the derivative transaction do not have credit exposure to each other as they would have in a bilateral transaction.

What is a Cme clearing member?

Clearing members are highly capitalized, closely monitored, and carefully selected companies that stand behind all trades made through CME Group Exchanges.

For pdfFiller’s FAQs

What is CME Over-The-Counter Derivatives Clearing Membership Handbook?

The CME Over-The-Counter Derivatives Clearing Membership Handbook is a comprehensive document that outlines the rules, procedures, and requirements for entities seeking to become members of the CME Group for the purpose of clearing over-the-counter derivatives.

Who is required to file CME Over-The-Counter Derivatives Clearing Membership Handbook?

Entities that wish to become clearing members of the CME Group for over-the-counter derivatives must file the CME Over-The-Counter Derivatives Clearing Membership Handbook as part of their membership application process.

How to fill out CME Over-The-Counter Derivatives Clearing Membership Handbook?

To fill out the CME Over-The-Counter Derivatives Clearing Membership Handbook, applicants should carefully follow the guidelines provided in the handbook, complete all required sections accurately, and submit the document along with any necessary supporting information.

What is the purpose of CME Over-The-Counter Derivatives Clearing Membership Handbook?

The purpose of the CME Over-The-Counter Derivatives Clearing Membership Handbook is to establish clear standards and procedures for membership applications, ensure compliance with regulatory requirements, and promote transparency and integrity in the clearing process.

What information must be reported on CME Over-The-Counter Derivatives Clearing Membership Handbook?

The information that must be reported includes the applicant's legal structure, financial information, risk management policies, operational capabilities, and any relevant disclosures as required by CME Group's guidelines.