CME’s European CCP to lower rates default fund burden

Firm hopes move will entice smaller players to join rates clearing service

Rain on umbrella
CCP hopes reduced contribution requirement will encourage more firms to use rates service

CME Group is halving the minimum default fund requirement for firms clearing interest rate swaps at its European clearing house, CME Clearing Europe – a move it hopes will bring in additional users to the service, which has yet to gain significant market share.

The central counterparty (CCP) submitted a rule amendment to the US Commodity Futures Trading Commission on February 7 outlining details of the change, which will see the minimum contribution to its rates default fund fall to €5 million

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