CBOT And CME announce first remote clearing firm under common clearing link

CBOT Chief Operating Officer Bryan T. Durkin said, "Remote clearing for CBOT products is a valuable tool for our market users in Europe as well as Asia. It provides customers with local processing and allows them to achieve significant cost savings as they trade the CBOT's markets, such as our highly liquid U.S. Treasury futures and options. Through our clearing agreement with the CME, we seek to serve customers globally. Today’s announcement illustrates how cooperation with the CME continues to result in the best value for users of both exchanges."

Managing Director and President, CME Clearing House Division Kimberly Taylor said, "When CME launched our transaction processing agreement with the CBOT we expected to provide significant improvements for customers around the world. Extending our ability to remotely clear transactions for European customers provides customers and clearing member partners with additional flexibility in structuring their business to be cost efficient. This remote clearing capability further demonstrates CME’s technology leadership capabilities and the benefits customers can realize from our cooperation with the CBOT."

The CME/CBOT Common Clearing Link, which was fully implemented in January 2004, set the standard for the industry and is delivering capital requirement reductions of $1.7 billion to users of both exchanges' markets. The agreement included the creation of a single guarantee fund and lowered performance bond collateral requirements.