CME members get reprieve

Yesterday Bloomberg reported that CME Group would raise margin on members trading non-hedged accounts to comply with recent rule Commodity Futures Trading Commission (CFTC) rule changes.   Those margin increases were due to kick in on Monday May 7 but CME was granted a 90-day extension.

Press release

CME Group today requested and received a 90-day extension for implementing margin changes announced yesterday in order to comply with CFTC Regulation 39.13(g)(8)(ii), as it applies to customers that are exchange members (member-customers) and omnibus accounts. 

During the extension period, CME Clearing will work with the CFTC to address member-customer concerns.  Additionally, CME Group will keep member-customers informed during this period and provide adequate notice of any changes to margin requirements.

With the extension, CME Clearing now will be required to enforce this rule as it applies to member-customers and omnibus accounts on August 5, 2012. 

 

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome