At CME, central bank balances hit all-time high

Over 70% of the CCP’s loss-absorbing funds stashed at the Fed, as interest rate expectations drive liquidity pool expansion

CME Clearing increased the amount of liquid resources at its disposal by $4.9 billion to the highest level since Q1 2020. The central counterparty (CCP) reported $203 billion on aggregate at end-December, up 2.5% quarter on quarter.

The bulk of the CCP’s liquidity pool continues to be in central bank balances, which rose $6.8 billion to $146 billion over the period.

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