Cme Group Inc. · NASDAQ:CME
Cme — Investor Presentation (April 2013)
19 slides from Cme's investor presentation, April 2013
Slide 1: OTC Clearing Readiness
OTC Clearing Readiness April 2013
Slide 2: Clearing Mandate Timeline
Clearing Mandate Timeline Category 1: Clear all swaps subject to the mandate 90 days after the final rule on mandated clearing of interest rate Category 1 March 11th and credit swaps is published. • Swap Dealers (SDs) • Security-Based SDs • Major Swap Participants • Major Security-Based Swap Partici
Slide 3: OTC Clearing Checklist
OTC Clearing Checklist How to Get Ready with CME Group Critical Items Useful Information Affirmation platform selection and testing Run margin simulations with CME CORE Account registration for OTC Clearing Run portfolio margining analysis through CME CORE (if applicable) Finalize legal do
Slide 4: CME Account Registration
CME Account Registration In order to clear OTC IRS, CDS, and NDFs at CME, you need to register your accounts with CME The process has been streamlined and now only requires one file to be filled out Required Information: Address and User Information API Relationship Form Listing the Enti
Slide 5: CME Account Registration
CME Account Registration In order to clear OTC IRS, CDS, and NDFs at CME, you need to register your accounts with CME The process has been streamlined and now only requires one file to be filled out Required Information: API Relationship Form Address and User Information List of Funds (o
Slide 6: Platforms Connected to CME Clearing
Platforms Connected to CME Clearing Several market leading affirmation platforms and Swap Execution Facilities are directly connected to CME Clearing CDS Migration Bloomberg ICE Link Javelin MarkitSERV TradeWeb CME ClearPort Utility CME Clearing Bank of Deutsche Goldman Barclays BNP Paribas Citigrou
Slide 7: Testing: UAT Environment Overview
Testing: UAT Environment Overview For specific test scripts contact your Clearing Member Firm Step 1: • Submit trades to CME Group for Clearing • IRS: various tenors (2,5,10,30 years) • CDS: index and single names with applicable tenor(s) • FX: one or more NDFs • OBSERVE the following: UAT Accounts
Slide 8: Testing: UAT Environment Overview
Testing: UAT Environment Overview Step 2: • Terminate Various Cleared Trades Verify Pricing on T+1 Settlement of Upfront Payments Confirm the Affirmation Process: Able to affirm a new trade when terminating an existing trade Netting Options Integration with Client’s internal systems Step 3:
Slide 9: Testing: Production Environment
Testing: Production Environment Steps: • Repeat Steps 1-3 of UAT Testing with Production Accounts • Verify Internal Systems are compatible with: Trade Submission Cash Flows Initial Margin Terminations © 2012 CME Group. All rights reserved 9
Slide 10: The Most Transparent OTC Clearing Solution
The Most Transparent OTC Clearing Solution 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 Position Reporting via the Trade Register End of day mark to market values for all IRS positio
Slide 11: IRS Reporting
IRS Reporting Establish a secure FTP site to get access to these reports 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. To set up a secure FTP site for your firm, please contact: CME On
Slide 12: CDS Reporting
CDS Reporting Establish a secure FTP site to get access to these reports 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. To set up a secure FTP site for your firm, please contact: CME On
Slide 13: CME CORE
CME CORE Transparency through an interactive Margin Calculator • 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 CME CORE given portfolio Overview • Choose fr
Slide 14: Cleared OTC IRS Product Scope
Cleared OTC IRS Product Scope CME has delivered a comprehensive global product scope that includes the 10 currencies that account for 95% of vanilla IRS market* 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 i
Slide 15: Cleared OTC CDS Product Scope
Cleared OTC CDS Product Scope Clearing Eligible North American Products Product Scope Status Series 8 7 and 10 tenors Clearing Eligible Series 9 – 12 CDX IG 5, 7, and 10 year tenors Series 13 – 20 Clearing Eligible 3, 5, 7, and 10 year tenors Series 11 – 20 CDX HY Clearing Eligible 5 year tenor © 20
Slide 16: Cleared OTC FX Product Scope
Cleared OTC FX Product Scope 12 OTC FX Non-Deliverable Forwards *All settlements in USD Brazilian Philippine Malaysian Indian Korean Chinese Renminbi Real Peso Ringgit Rupee Won Yuan Indonesian Taiwan Chilean Colombian Peruvian Russian Rupiah Dollar Peso Peso Sol Ruble 26 OTC FX Cash-Settled Forward
Slide 17: Deliverable Swap Futures
Deliverable Swap Futures Unique way to gain swap exposure with the benefits of standardized futures Overview • 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 dat
Slide 18: Helpful Links
Helpful Links CME Group Resources: • CME Group OTC Products & Services www.cmegroup.com/otc • OTC Account Registration www.cmegroup.com/otcregistration • OTC Connectivity Partners www.cmegroup.com/otcpartners • CORE Margin Tool www.cmegroup.com/core © 2012 CME Group. All rights reserved 18
Slide 19: Futures trading is not suitable for all investors
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 sh