CME Group to Offer Clients Margin Offsets on Rate Swaps, Futures
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CME Group Inc., the world’s largest futures exchange, received regulatory approval to reduce the amount of margin required of its customers to back interest-rate futures and over-the-counter derivatives that offset each other.
Known as portfolio margining, the reductions will go into effect Nov. 19, the Chicago-based company said in a statement today. In March, CME Group began offering the service to the banks that are members of the exchange. CME Group customers, such as money managers and hedge funds, access the exchange through a bank member such as JPMorgan Chase & Co.