CME guaranty fund cut could lure new clearing members
Regional banks and prop shops are eyeing direct membership, but the lower minimum guaranty fund contribution does little for existing FCMs
CME Group's decision to slash its minimum guaranty fund contribution for interest rate swap clearers by 70% has piqued the interest of would-be clearing members.
CME announced on August 19 it would cut the minimum contribution that clearing members for interest rate swaps must make to its guaranty fund from $50 million to $15 million.
The reduction brings CME in line with the £10 million minimum default fund contribution at rival SwapClear, and is part of an effort to attract more direct members
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