OTC-IRS

July 2013

Cleared OTC Interest Rate Swaps Security. Neutrality. Transparency.

http://www.cmegroup.com/

© 2013 CME Group. All rights reserved

CME Group OTC Clearing

2

CME Group is the industry leader in OTC Clearing, delivering a broad offering spanning Interest Rates, Credit, FX, Energy, Metals, and Ags

Founded in 1898 as CME (Chicago Mercantile Exchange)

#1 derivatives exchange in the U.S. and globally by volume

Global leader in exchange-traded markets with $3B in revenue

Leading liquidity / volumes in global benchmarks across all asset classes

Extensive and diverse distribution network and customer base

International linkages with leading global exchanges

Launched in 2002 to provide risk mitigation in energy markets following the Enron collapse

Market leading OTC Clearing venue for a diverse range of commodities asset classes

1,700 listed contracts

10,000 registered users around the world

500,000 contracts cleared daily

CME ClearPort CME Group

OTC Product Progression

FX

Coal

Electricity IRS, Freight, Iron Ore

Natural Gas, Crude

CDS, Ags, Gold Ferrous Metals

ClearPort Established

Metals

2002 2003 2007 2009 2011 2004 2008 2010 2012


© 2013 CME Group. All rights reserved 3

Multi-Asset Class Solution via One Clearinghouse Delivering Capital Efficiencies in a Capital Constrained World

• CME has worked closely with buy-side and sell-side participants to build a multi-asset class, market leading OTC Clearing Solution

• Builds on the strength of CME Group’s market leading Interest Rate and FX futures and options products

• In June, over 200 firms cleared trades at CME, comprising a wide array of market participants including asset managers, hedge funds, insurance companies, GSE’s, and proprietary trading firms

Portfolio Margining

• Allows margin offsets of OTC IRS against Treasury and Eurodollar Futures, with savings up to 90%

• Launched portfolio margining for house accounts in May and extended this service to customers in November

• Since the launch of this offering, market participants have seen significant risk reductions that account for margin savings of over $1 billion

• CME CORE now offers a margin optimization feature allowing firms to run a portfolio margin savings analysis of IRS and Eurodollar and Treasury Futures

Deliverable Swap Futures

• Deliverable Swap Futures total volume is over $56.7 billion in notional, with open interest at $5.0 billion in notional since December 2012 launch

• Offers capital efficiencies through futures-style margining and netting by providing margin offsets against Eurodollar and Treasury Futures

• All Open Positions are delivered into OTC Cleared IRS Swaps at expiration

• Clients have taken advantage of the flexible execution through Globex, block trades, and open outcry

Multi-Asset Class

• Broadest OTC product scope available to customers with 12 IRS currencies, 56 CDX indices, and 12 FX NDFs

• Operational efficiencies of a multi-asset class solution for IRS, CDS, and FX all in one clearinghouse

• Simplicity of working with one clearinghouse instead of several as firms work to build out their infrastructure to prepare for OTC Clearing

• Over $4.7 trillion of notional has cleared and open interest is over $3.0 trillion

Real-Time Clearing

• Superior technology enables real-time clearing with straight-through processing and real-time confirmation is sent once the trade is cleared

• Customers don’t have to wait 15 minutes to find out if a trade has been accepted or rejected

• Negotiate, execute and submit trades through 11 affirmation platforms and SEFs

• Time lags in the clearing cycle introduces potential credit risk, and with a faster clearing cycle this risk is reduced and leads to more efficient risk management



Solid Momentum with Strong Volume and Increasing Open Interest

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• Since launch, we have cleared $4.7 trillion with Open Interest growing 45% since the end of May • Record volume month in June; a 25% increase over the previous record in May • Open Interest is now at $3.0 trillion

• Volumes and Open Interest continue to increase as we have seen a record number of participants in June • In June alone, over 200 firms cleared trades at CME

*Data as of 6/30/13

$150,000

$1,150,000

$2,150,000

$3,150,000

$4,150,000

$5,150,000

$6,150,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Not

iona

l Val

ue ($

Mill

ions

)

Cumulative Volume Total Open Interest

2012 2013



EXISTING PRODUCTS

• USD Fixed/Float out to 51 years- 1M, 3M and 6M LIBOR indexes • EUR Fixed/Float out to 51 years- 1M, 3M and 6M EURIBOR indexes • GBP Fixed/Float out to 51 years- 1M, 3M, 6M LIBOR index • CAD Fixed/Float out to 31 years- 3M CDOR index • JPY Fixed/Float out to 31 years- 1M, 6M LIBOR index • CHF Fixed/Float out to 31 years- 6M LIBOR index • AUD Fixed/Float out to 31 years- 3M, 6M BBSW index • SEK Fixed/Float out to 31 years- 3M STIBOR index • DKK Fixed/Float out to 31 years- 6M CIBOR index • NOK Fixed/Float out to 31 years- 6M NIBOR index • NZD Fixed/Float out to 15 years- 3M FRA index • HKD Fixed/Float out to 15 years- 3M HIBOR index

• Zero Coupon Swaps: USD, EUR, GBP out to 50 years • Overnight Index Swap (OIS): USD, EUR, GBP, JPY out to 30 years • Basis Swaps: USD, EUR, GBP out to 51 years; AUD, JPY out to 31

years • Forward Rate Agreements (FRA): USD, EUR, GBP, JPY • Variable Notional Swaps (Amortizers)

2H 2013 EXPANSION

• Additional Currency: SGD out to 15 years • Additional Currencies: HUF, CZK, PLN, ZAR out to 11 years

ADDITIONAL EXPANSIONS

• Additional Currencies: MXN, BRL

• Swaptions

• Inflation Swaps

Cleared OTC IRS Product Scope

5

July

MXN BRL

HUF CZK PLN ZAR

SGD

August 12th

CHF AUD JPY USD EUR GBP CAD

SEK DKK NOK HKD NZD



Deliverable Swap Futures Unique way to gain swap exposure with the benefits of standardized futures

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• Created based on strong demand from financial market participants including banks, hedge funds, asset managers and insurers

• U.S. dollar-denominated quarterly contracts expiring on IMM dates for key benchmark maturities (2, 5, 10, 30 years)

• At expiration, all open positions will deliver into CME Group Cleared Interest Rate Swaps • Complements CME Group’s market-leading Interest Rate Futures and Options businesses and

Cleared OTC Swap offerings

• Risk offsets with our liquid Eurodollar and Treasury contracts

• Flexible execution– CME Globex, Blocks, EFPs or Open Outcry

• Trade in an OTC manner — block calendar spreads • No block surcharges • Lower thresholds • Longer reporting time

• Currently have 10 block providers for Deliverable Swap Futures

Overview

Key Benefits

• Contract launched on December 3rd, 2012 • Seen a wide range of market participants including

banks, hedge funds, asset managers, and proprietary trading firms

• Have traded over $56.7 billion in notional contracts (567,450 contracts) and Open interest is now over $5.0 billion (50,369 contracts) through Globex, block trades, EFPs, and the pit

• Markets remain tight, about ½ bp wide in OTC terms, matching the OTC interest rate market

Product Update



OTC Clearing Checklist How to Get Ready with CME Group

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Critical Items Useful Information Affirmation platform selection and testing Account registration for OTC Clearing Finalize legal documents with Clearing Members Select fee program and netting style

Clearing Members set up Production accounts

that are ready for clearing Execute first cleared trade in Production

Execute Production trade with each counterparty

Run margin simulations with CME CORE

Run portfolio margining analysis through CME CORE (if applicable)

Set-up CME secure FTP site for direct access to reporting: Position valuation reports Client account margin reports IRS curve data

Hold deep dive meetings with CME Group

subject matter experts on products, operations, and risk management

Evaluate back-loading alternatives (if applicable)



CME Clearing

Bank of America Barclays

Platforms Connected to CME Clearing Several market leading affirmation platforms and Swap Execution Facilities

are directly connected to CME Clearing

BNP Paribas Credit Suisse Deutsche Bank

Goldman Sachs

JPMorgan Morgan Stanley Nomura UBS

RBS PLC

OTC IRS/CDS Clearing Members

Additional OTC IRS Clearing Members

Negotiate, execute, and submit trades through multiple venues to CME Clearing

Straight through processing and real-time confirmation once the trade is cleared

Protects the confidentiality of trading relationships, while enabling customers to terminate positions with any market participant

Operational flexibility of a multi asset class solution for IRS, CDS, FX, and Commodities via one clearinghouse

Citigroup

ICE Link CME ClearPort Javelin MarkitSERV Bloomberg CDS Migration Utility TradeWeb

Crédit Agricole-CIB

HSBC

BNY Mellon

RBS Securities

Royal Bank of Canada

Societe Generale State Street

Bank of Montreal

Wells Fargo

Newedge Bank of Nova Scotia



Trade Workflow Mechanics

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Straight Through Processing allows for real-time clearing and trade confirmations

1 – Dealer and Client agree to trade

2 – Dealer alleges swap to Client through the Affirmation Platform

3 – Client selects Clearing Member and verifies the swap through the Affirmation Platform

4 – Affirmation Platform sends the matched trade between Dealer and Client to CME Clearing House

5 – CME checks for validation of the product, account and applies credit limits set by Clearing member(s), and then accepts the swap for clearing

5 – CME sends “Cleared” notification back to the Affirmation Platform which displays the “Cleared” Status to each party

5 – CME sends a Clearing Confirmation to Clearing Member(s) once all is validated

Client Dealer

Affirmation Platform

1

2 3

4 5

Clearing Member (Client)

Clearing Member (Dealer)

CME Clearing House

Product Account Credit 5 5



Transparent Valuation and Reporting

VALUATION OVERVIEW USD and CAD IRS positions will be marked to market once per day at 3PM EST

EUR, GBP and CHF IRS positions will be marked to market once per day at 11am EST (4PM London)

JPY IRS will be marked to market once per day at 2am EST (3PM Tokyo)

AUD IRS will be marked once per day at 2:30am EST (4:30PM Sydney)

DKK, NOK and SEK IRS position will be marked to market once per day at 10:00 AM EST (4:00 PM Central European)

Pricing inputs obtained from wire service feeds

CME Group utilizes OIS discounting, log-spline interpolation, and Bootstrap Generator to produce a Zero Coupon curve

PRICING INPUTS LIBOR: O/N, T/N

FRA: 0 x 3

CME Eurodollars – first 6 Quarterly Eurodollar contracts, convexity adjusted

Par Swap Rates: 2Y – 10Y, 12Y, 15Y, 20Y, 30Y, 40Y, 50Y (SA, 3M LIBOR)

OIS (Fed Funds to 3M Libor) 3M, 6M, 9M, 1Y, 2Y-7Y, 10Y, 12Y, 15Y, 20Y, 25Y, 30Y

Basis Swaps (1M/3M, 3M/6M Libor): 6M, 1Y, 18M, 2Y-7Y, 10Y, 12Y, 15Y, 20Y, 25Y, 30Y

REPORTING CME Group provides customers with full transparency including direct access to daily reports showing

curve inputs, daily discount factors, and valuations for each cleared swap position

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Customers have full visibility into CME Group’s swap valuations


Details of Customer Reports

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Report Description Time Available in Testing

Available in Production

Preliminary Trade Register

Includes new and open trades as well as corresponding cash flows on positions cleared prior to 4:45pm EST on that day

4:45pm EST

End of Day Trade Register

Includes new and open trades as well as corresponding cash flows on positions cleared on that day

8:00pm EST

Curve Input Report

Contains the curve inputs of the CME Swap Curve

4:30pm EST

Discount Factor Report

Displays the daily discount factor out to 31 years

4:30pm EST

CME Holiday Calendar

Shows the CME Holiday Calendar 3:00pm EST

Price Alignment Interest (PAI) Rate File

Provides the rate used to calculate PAI 1:00pm EST

Client Margin Report

Provides an account by account breakdown of your initial margin requirements across your FCMs

10:00pm EST

The above reports can be accessed through a secure FTP site. Please contact CME’s Onboarding Team at (312) 338-7112 or [email protected] to gain access.

mailto:[email protected]



CME Group provides direct access to daily reports through a secure FTP site, which enables customers to fully integrate key OTC data into their internal systems.

Reporting & Margin Tools

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Position Reporting via the Trade Register End of day mark to market values for all IRS positions across all clearing members, including existing trades and any

new trades cleared that day Available at 4:45pm EST, so customers and their approved administrators/custodians can complete their daily NAV

reports

IRS Curve Data CME offers full transparency into IRS valuation, including a detailed white paper on curve construction, enabling

customers to replicate our IRS valuation curve and calculate the value of their IRS positions The secure FTP site provides daily IRS curve data across all currencies, including curve inputs that are used to

construct both the forecasting and discounting curves, and the curve outputs like daily forward rates and discount factors

Client-Level Margin Files Gives clients access to the exact margin requirements given to the FCMs for their accounts

To set up a secure FTP site for your firm, please contact: CME Onboarding Group at [email protected] or (312) 338-7112

CME CORE Margin Tool is a web-based tool to calculate initial margins for IRS and CDS portfolios

“What if” analysis shows how margins will change as positions are added or removed from any given portfolio

CME Margin Optimizer Enhancement The CME CORE tool will soon be enhanced to calculate Optimization of IRS Portfolio Margining Clients can upload a portfolio of IRS and Futures, and CORE will generate a report with the ideal allocation of

Eurodollar and Treasury Futures to move into the OTC Customer Cleared Swaps account to minimize the portfolio risk, and therefore, reduce margins

For access to: CME CORE: Visit cmegroup.com/core

mailto:[email protected]



Superior Customer Protections

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CME Clearing is the industry leader in mitigating risk for customers through the US FCM clearing model

LSOC Without Netting Variation Margin

Client- Specific Excess Margin

CME Safekeeping Accounts

• In an FCM default, CME Clearing will discontinue netting variation gains and losses within the defaulted FCM’s cleared swaps customer account with CME Clearing on a post-default basis

• By discontinuing Variation Margin netting, CME will better protect non-defaulting customers by helping them keep their positions intact while porting them to another FCM with as much collateral as possible

• LSOC Phase 2 (LSOC with Excess) will launch on Monday, April 22 • CME will accept excess customer funds from an FCM. The FCM must submit a daily Collateral

Value Report (CVR) to specify the value of each individual • The CVR given to CME Clearing identifies for each customer the amount of collateral protected

from being used to meet the obligation of another customer

• Proposed account structure aims to let end-customers meet their margin obligations at FCM’s via third-party custodial accounts

• Allows end-customers to utilize custodial account arrangements and use assets held in those accounts to meet margin obligations

• CME, an FCM, an end-customer, and a custodian bank will execute a quad-party custody arrangement to facilitate the CME Safekeeping account transactions



• Expected to cover extreme scenarios that are optimally addressed using a mutualized pool rather than margins

• GF Sizing considerations include risk, capital usage and charges , stakeholders’ incentives, and portability concerns during periods of default

• Additional collateral that can be called upon should all previous layers of the waterfall are exhausted

• Caps the limited resource waterfall

• Contribution set aside by CME to help cure a default prior to dipping into the survivors’ funds

• Each Member’s contribution to the GF

• Liquidity charge accounts for protecting large concentrated portfolios whose closeout could cost more or take longer than baseline timeframe

• Initial Margin is used to cover day-to-day P/L moves

1 The actual amounts will be based on the sum of the third and fourth largest net debtor profiles

Robust Financial Safeguards

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IRS Non-Defaulting CMs Guaranty Fund

General Assessment Powers for IRS1

CME Contributed Capital for IRS $100M

Defaulting Member IRS Guaranty Fund

Baseline Initial Margin

Liquidity Charge

FUN

DE

D

UN

FUN

DE

D

DE

FAU

LTE

R P

AY

S

SU

RV

IVO

R P

AY

S

CME structured the IRS risk waterfall to protect our customers during times of market stress and mitigate systemic risk



Customer Account Portability

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Portability of customer positions and collateral is a cornerstone of CME customer protections

• Clients maintaining accounts at multiple clearing members are able to control the timing and pacing of their porting transactions

• In the agency model, clients “own” their positions

• The agency model supports portability; at CME this is a matter of routine and standard practice

CUSTOMER CONTROLLED PORTABILITY “TRANSFERS”

Establishing and managing accounts at multiple clearing members

• In September 2008, CME seamlessly ported all $2.2 billion of customer funds and 2.5 million customer positions from Lehman Brothers to a solvent clearing member

• In wholesale porting transactions, CME balances the need to assure client safety with recalibration of financial safeguards to minimize stress in the financial system

PROVEN SUCCESS IN CUSTOMER PORTABILITY

Wholesale porting from stressed to solvent clearing members

• Portability is essential to customer protection, both in times of market stress and during the normal course of business

• Portability is underpinned by CME Rule 853, governing transfers of trades



Portfolio Margining Overview

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CME Group has administered a range of cross-margining programs for more than 20 years

With market leading Interest Rate products and the launch of Cleared OTC Interest Rate Swaps in 2010, CME is able to offer both customer and house accounts capital efficiencies for Cleared OTC Interest Rate Swaps and Eurodollar and Treasury Futures

Since the launch of Portfolio Margining in May 2012, firms are already taking advantage of this service and seeing significant savings and the first customer portfolio margining occurred in March

The risk reduction achieved by this program has shown capital efficiencies of up to 90% for certain portfolios – figures that remain unparalleled in the industry

• Total risk reductions now account for over $1 billion in initial margin savings

• Clearing Members can reduce their own regulatory and guaranty fund capital costs by facilitating portfolio margining for clients

Creating Solutions for a Capital Constrained World

Unparalleled Capital Efficiencies

Portfolio Margining Available for House

Accounts CME Optimizer integrated

with CME CORE

May 7, 2012 Future Enhancements

Portfolio Margining Available for Customers

Nov. 19, 2012

Portfolio Margining Available for Deliverable Swap Futures and

Cleared IRS*

Sept. 21, 2012

CME Optimizer

February 2013

*Pending regulatory approval



Margin Efficiencies CME Group offers unparalleled capital efficiencies in a capital constrained world

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Initial Margin Example for Swap Spread Positions • Below is an example of the initial margins for swap spread trades under three different margining scenarios • Each scenario has a short position of 1000 CBOT Treasury Futures and a DV01 equivalent receive fixed swap (or

long Deliverable Swap Futures) position

Treasury Futures Leg Margin $1,100,000 Swap Leg Margin $3,299,395 Combined Margin $4,399,395

Separate Margining at a Competing Clearinghouse

CME Group IRS Portfolio Margining

Cleared IRS and Treasury Futures margined together CME Margin $1,905,332

CME Group Deliverable Swap Futures

Deliverable Swap Futures and Treasury Futures with Spread Credits CME Margin $1,181,900

Savings: $2,494,063 (57%)

Savings: $3,217,495 (73%)

CME Group’s IRS Portfolio Margining and Deliverable Swap Futures enable clients to achieve 57%-73% margin savings on swap spreads, compared to clearing the Interest Rate Swap at a competing clearinghouse



Methodology

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IRS Margin Methodology

Historical VaR

Margins built to provide 99% coverage over a 5-day closeout period Historical scenarios are: Generated using a 5-year look back period Synchronized across all observed tenors on the zero curve, across all currencies Scaled using Exponentially Weighted Moving Average (EWMA) based volatility forecasts

Margin is currently the 99.7th % of portfolio changes (loss) across all scenarios

For cross margining Eurodollar and Treasury Futures with IRS, CME will leverage the current multi-currency Historical VaR framework

Reasoning

CME uses Treasury Future prices and Eurodollar prices (themselves) as an underlying risk factor, as it accounts for risks including: Switch of the Cheapest-to-Deliver (CTD) (applies Treasury Futures) Delivery timing (applies to Treasury Futures) Changes in the convexity adjustment (applies to Eurodollars) Covers extremely well-hedged portfolios (applies to Eurodollars)

Application Apply HVaR methodology to Eurodollar and Treasury futures prices Create a rolling time series of returns (prices)

*Customer Portfolio Margining is targeted for 2H 2012 pending regulatory approval.



Portfolio Margining Examples

Portfolio Portfolio Details Margin Savings Margin Savings Details ($M)**

Max* Average* Margined Separately

Margined Together

2Y Invoice Spread

2Y Treasury Note Futures vs Equivalent Invoice Swap 79% 64% .8M .2M

5Y Invoice Spread

5Y Treasury Note Futures vs Equivalent Invoice Swap 79% 68% 1.9M .4M

10Y Invoice Spread

10Y Treasury Note Futures vs Equivalent Invoice Swap 75% 58% 4.9M 1.2M

30Y Invoice Spread

Treasury Bond Futures vs Equivalent Invoice Swap 67% 41% 6.5M 2.1M

2Y Swap vs ED Hedge 2Y IRS vs Weighted Eurodollar 2Y Strip 89% 72% 100K 10K




Maximum savings is up to 89%, based on back testing of portfolios from 2006 to 2011.

* Savings = [Gross Margin – Net Margin] / Gross Margin, where Gross Margin is the outright swap HVaR margin plus the futures SPAN margin (no offset benefit) and Net Margin is margining both swaps and futures in HVaR (with offset benefit).

** Values are rounded to nearest hundred thousand or ten thousand Dollars. These values do not include transaction costs and are subject to change, depending on market volatility.



CME CORE Transparency through an interactive Margin Calculator

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Current Product Offered in CORE

• OTC IRS (USD,GBP,EUR, AUD,JPY,CHF,CAD, SEK, DKK, NOK ) • OTC CDS • OTC FX • Eurodollar and Treasury Futures • Delta Laddering • Basis Swaps, FRAs, Zero Coupons

CME CORE Overview

• Interactive Margin Calculator to view initial margins and calculate portfolio margining savings

• “What if” analysis shows how margins will change as positions are added or removed from any given portfolio

• Choose from multiple upload options or manually import your portfolio

• Easily export margin results into Microsoft Excel or Adobe PDF formats

Margin Optimization

• CORE supports margin optimization, which calculates the ideal allocation of futures to move into an OTC account to minimize portfolio risk, and in turn, minimize IRS margin requirements.

• Portfolio margining savings of Cleared OTC IRS and Interest Rate Futures with savings up to 90% • Calculates IRS portfolio margins for Clearing Members’ clients, as well as their own proprietary

accounts To learn more about CME CORE and gain access to this tool:

Visit www.cmegroup.com/core

http://www.cmegroup.com/core



Flexible Collateral for Initial Margin

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CME Clearing accepts a broad array of collateral for the Customer OTC Account Class

Collateral Haircut

US Cash None

Non-US Cash (EUR, GBP, CAD, AUD, JPY, CHF)* 5%**

Sovereign Debt of UK, Germany, France, Canada, Japan, and Sweden

5%-10.5% (maturity based) Additional 1.5% for off-the-runs

US Treasury Debt 0.5%-11% (maturity based) Additional 1.5% for off-the-runs

US Agency Debt 3.5%-7% (maturity based) Additional 1.5% for off-the-runs

US Agency Mortgage Backed Securities 11%

Corporate Bonds (IEF4) 20%

Money Market Mutual Fund (IEF2) 3%

Bank Deposit Program (IEF5) None *The last three currencies are available for IRS only. ** Haircut is only applied when cash is used to meet a margin requirement based in a different currency.



Corporate Bond Collateral Program

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Clearing Members can transfer securities into a tri-party account controlled by CME at either bank* as a term pledge to receive initial margin credit

*The Corporates Collateral Program, IEF4, is supported by a partnership with Bank of New York and JPMorgan Chase

• Allows corporates bonds to be pledged as initial margin collateral for both Cleared IRS and futures • Reduces costs of clearing for customers and creates further efficiencies for Clearing Members

Overview

• High quality bonds, at least A- rating by NRSO • USD denominated, both domestic and global issuances • Vanilla Bonds (Fixed rate bullet, callable, or putable) • Over $300M in principal outstanding • TRACE eligible

Bond Requirements

• Haircut: (20%) • Concentration Limits: The lesser of 5% per issuance and 5% per issuer or $200M • Level II industry diversification (up to 25%)

Program Parameters

• CME Clearing will publish a list of eligible CUSIPs at the beginning of each month • CUSIP list will likely remain static except bonds that mature, and bonds that are deemed ineligible due to

changes (i.e. rating downgrade, distress, etc)

Eligible CUSIP List



Customer On-boarding Resources CME CORE Margin Tool

Web-based margin tool that enables customers to generate initial margins for IRS and CDS portfolios

CME CORE can be accessed by doing the following:

• Visit http://www.cmegroup.com/clearing/cme-core-cme-clearing-online-risk-engine.html

• Create a CME SMART Click ID

• Once a SMART Click ID is attained, please email [email protected] to request entitlements to CME CORE. Specifically, in an email please provide the user ID and specify the request for the IRS/CDS asset classes.

• Please ensure your desktop is equipped with a recent version of Microsoft Silverlight (MS Add On): http://www.microsoft.com/getsilverlight/Get-Started/Install/Default.aspx

CME On-boarding Team

Team of on-boarding experts who work with buy side clients to help them prepare to clear IRS and CDS, and engage in testing the clearing process

Extensive work with the affirmation platforms, and ability to connect customers to the right resources at those firms

The team can be reached at (312) 338-7112 and [email protected]

http://www.cmegroup.com/clearing/cme-core-cme-clearing-online-risk-engine.html



Legal Documentation Documentation between CME Group and Customer

There is no longer a legal document, but by registering with CME, you are agreeing to the rules, policies, and procedures of CME and, as applicable, participating exchanges

The registration documents can be found at: http://www.cmegroup.com/trading/otc/files/otc-registration-forms.xls

Documentation between Clearing Member and Customer

Clearing Member Futures Account Agreement (FCM Agreement)

Clearing Member OTC Addendum

http://www.cmegroup.com/trading/otc/files/otc-registration-forms.xls

http://www.cmegroup.com/trading/otc/files/otc-registration-forms.xls



Next Steps and Contact Us Establish a relationship with a participating CME IRS Clearing Member Select affirmation platform and work with Clearing Member throughout testing cycles

Complete required Clearing Member Customer Documentation

Begin clearing trades

For any questions regarding On-Boarding and Testing, please contact : On-boarding Team 312 338 7112 [email protected]

For general information, please contact: Jack Callahan 312 454 8312 [email protected] Steve Dayon 312 466 4447 [email protected]

Europe David Coombs +44 20 3379 3703 [email protected] Jaki Walsh +44 20 3379 3858 [email protected]

Asia Louis Chong +65 6593 5588 [email protected]

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Cleared OTC IRS Clearing Firm Contacts Firm Contact Name Email Phone Number Bank of America Merrill Lynch

Todd D’Agosta (US) Samantha Page (EMEA)

[email protected] 646 855 9813 44 20 7995 3955

Barclays Sandy Fleischman Patrick Corrigan

[email protected] [email protected]

212 526 6548 212 526 7101

Bank of Montreal Livio Bencich Kirk McMillan


416 359 6395 416 359 4603

Bank of Nova Scotia Li He [email protected] 212 225 5283 BNP Paribas Ira Rudman

Gavin Dixon [email protected] [email protected]

212 841 2768 44 20 7595 8417

BNY Mellon John Guthrie Vipul Pal


212 635 6718 212 635 8359

Crédit Agricole-CIB Marc Konigsberg Karen Orczyk


212 261 7234 212 261 3998

Citigroup Chris Perkins Mariam Rafi


212 723 5943 212 723 4074

Credit Suisse Neil Burke John Dlubac


212 538 0761 212 325 3977

Deutsche Bank Elliot Barr Piers Murray


212 250 9831 212 250 9253

Goldman Sachs Mike Dawley Jack McCabe


212 902 7582 212 902 3037

HSBC Julianna Salazar Nick Marcelle


212 525 2353 44 20 7991 9132

JPMorgan Tom Alterson [email protected] 212 622 0335 Morgan Stanley Jason Swankoski

Mark Bortnik [email protected] [email protected]

212 761 5206 44 20 7677 9685

Newedge John Wilson Michael O'Connell


+44 20 767 68913 646 557 8602

Nomura Sandeep Kohli Stephen Scalzo


212 667 2037 212 667 8981

RBS Brian Halligan (RBS SI) Madlen Dorosh (RBS SI)


203 897 2504 203 897 9869

Royal Bank of Canada Alex Palese [email protected] 212 618 3369 State Street Stephen Chmil

Elizabeth James [email protected] [email protected]

212 259 3120 212 259 3022

Societe Generale Giovanna Carraro Shahab Amin


44 20 7676 7170 212 278 5970

UBS Ed Pla Reinhardt Olsen


203 719 2602 203 719 3408

Wells Fargo Jeff G. Gore George Simonetti


704 715 0528 704 715 1134

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Disclaimer Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade.

All references to options refer to options on futures.

CME Group is a trademark of CME Group Inc. The Globe Logo, CME, and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX is a registered trademark of the New York Mercantile Exchange, Inc. All other trademarks are the property of their respective owners.

The information within this brochure has been compiled by CME Group for general purposes only. CME Group assumes no responsibility for any errors or omissions. Additionally, all examples in this brochure are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. All matters pertaining to rules and specifications herein are made subject to and are superseded by official CME, CBOT and NYMEX rules. Current rules should be consulted in all cases concerning contract specifications.

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