CME
CME Clearing360

CME Clearing Services for Designated OTC Products

The efficiencies and benefits of centralized CME clearing are recognized throughout the financial world. Now, in keeping with its tradition of innovation and response to market needs, CME is extending its existing clearing services to the over-the-counter (OTC) marketplace with the introduction of Clearing360. The first OTC marketplace able to participate in this new service is the short-term interest rate swap marketplace, which parallels the CME Eurodollar market. CME expects to extend CME Clearing360 services to other markets in the future.

CME Clearing360 will allow hedge funds, proprietary trading firms and global and regional banks to substitute OTC trades for cleared only futures positions, providing clients access to the same performance guarantees that have previously only been available with exchange-traded products.

Click here to learn more about CME Clearing360.

Benefits of CME Clearing360

  • Greater capital and operational efficiencies, including risk offsets against related futures and options positions
  • World-class risk management of the credit, operational and legal risks that customers face in OTC trading
  • Regulated market protections that institutions have come to expect with CME products

CME Clearing360 enables OTC market participants to take advantage of existing systems and infrastructure offered by CME and its clearing member firms. CME Clearing membership is not required to use CME Clearing360 services, but a relationship with a CME clearing member firm is required.

Click here for Frequently Asked Questions on CME Clearing360.

To view a sample OTC Swap Transaction Confirmation form, please  click here.

  • Substitutions (“Subs”) of futures for forwards allow customers to substitute CME futures contracts for over-the-counter transactions in standard contract terms. For example, monthly and quarterly Eurodollar expirations can be substituted for Interest Rate Swaps. Additionally, daily expirations of Eurodollar futures contracts of up to six calendar months can be substituted for Forward Rate Agreements (FRAs). We expect to extend CME Clearing360 services to other markets in the future.