Cme Group Inc. · NASDAQ:CME
Cme — Investor Presentation (January 2013)
17 slides from Cme's investor presentation, January 2013
Slide 1: OTC Clearing Readiness
OTC Clearing Readiness January 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 Account Registration for OTC Clearing Run margin simulations with CME CORE Complete internal readiness and testing process Set-up CME secure FTP site for direct access to position valuation reports and
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: API Relationship Form Address and User Information List of Funds (o
Slide 5: Customer Legal Documentation
Customer Legal Documentation Documentation between Customer and Clearing Member Clearing Member Futures Account Agreement (FCM Agreement) Clearing Member OTC Addendum Documentation between Customer and Execution Counterparty FIA-ISDA Cleared Derivatives Execution Agreement • The FIA and ISDA p
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: Reporting
Reporting CME Group allows buy side firms to directly access reports through a secure FTP site, which helps them fully integrate key OTC data into their internal systems. The Trade Register shows customers the end of day mark-to-market values for their cleared OTC positions. This is available at 4
Slide 11: Transparent Margins Through CME CORE
Transparent Margins Through CME CORE CME CORE (CME Online Risk Engine) enables customers to calculate and evaluate their initial margin requirements for IRS and CDS Create New or Validate and Analyze and Review Load Existing Calculate Initial Results Portfolio Margin Requirement ENHANCE REPORTS TO I
Slide 12: CME Optimizer
CME Optimizer Optimizer Tool Now Available • The CME Optimizer is a tool that calculates the ideal allocation of Futures to move into an OTC account in order to minimize portfolio risk, and in turn, minimize IRS margin requirements • Margin calculations occur on a nightly basis and therefore this to
Slide 13: Cleared OTC IRS Product Scope
Cleared OTC IRS Product Scope CME has delivered a comprehensive global product scope that includes the 7 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- 3M and 6M EURIBOR indexe
Slide 14: Product Offering - Cleared OTC CDS
Product Offering - Cleared OTC CDS 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 – 19 Clearing Eligible 3, 5, 7, and 10 year tenors Series 11 – 19 CDX HY Clearing Eligible 5 year tenor
Slide 15: Product Offering - Cleared OTC FX
Product Offering - Cleared OTC FX 12 OTC FX Non-Deliverable Forwards All settlements are in USD and maximum maturity is 2 years Brazilian Philippine Malaysian Indian Korean Chinese Renminbi Real Peso Ringgit Rupee Won Yuan Indonesian Taiwan Chilean Colombian Peruvian Russian Rupish Dollar Peso Peso
Slide 16: 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 Other Resources: • FIA- ISDA Cleared Derivatives E
Slide 17: Futures trading is not suitable for all investors, and involves the risk of loss.
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