NexusFi: Find Your Edge


Home Menu

 





CME Group says preparing to open account at the Fed


Discussion in Traders Hideout

Updated
    1. trending_up 1,074 views
    2. thumb_up 1 thanks given
    3. group 0 followers
    1. forum 0 posts
    2. attach_file 0 attachments




 
Search this Thread

CME Group says preparing to open account at the Fed

  #1 (permalink)
 
puma's Avatar
 puma 
zurich
 
Experience: Advanced
Platform: Sierra ahRrrr CQG ...
Trading: Bund, ES, ...
Posts: 964 since Aug 2010
Thanks Given: 7,273
Thanks Received: 1,507

thats good for trading and counterparty risk

CME Group says preparing to open account at [AUTOLINK]the Fed[/AUTOLINK] | Reuters



Quoting 
CME Group says preparing to open account at the Fed
SAN FRANCISCO | BY ANN SAPHIR
CME Group Inc (CME.O) said on Tuesday it has received notice from the Federal Reserve that it is authorized to open an account at the U.S. central bank, allowing it to better safeguard cash deposited by its traders.

Deposits in the account will be limited to clearing member proprietary margins, CME said in an advisory to its members. CME is working with the Chicago Fed to open the account and will let members know how much interest it will pay on balances "as we get closer to an account opening date."

CME, which operates one of the world's biggest derivatives clearinghouses and several exchanges including the Chicago Mercantile Exchange, applied for access to Fed services in 2014, after its clearinghouse was designated a "systemically important" financial institution as part of the Dodd-Frank Wall Street reform act.

On any given day CME holds billions of dollars of margins put up by traders to back their positions at the clearinghouse, although it is unclear how much of this will be deposited at the Fed. A CME Group spokeswoman declined to provide figures or further detail.

IntercontinentalExchange, CME's biggest U.S. rival, also has an account at the Fed to keep cash from its swaps traders.

(Reporting by Ann Saphir; Editing by Chris Reese and Diane Craft)


Follow me on Twitter Started this thread Reply With Quote
Thanked by:




Last Updated on April 12, 2016


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts