Collateral Service

Depositing Margin

Clearing Members can satisfy margin requirements by depositing cash or securities. Cash collateral can be paid in a variety of currencies. The Clearing House stipulates which currencies are permitted for the deposit of cash collateral.

In the case of variation margin (i.e. the daily settlement of profits and losses), and margin calls, payment must be made in cash. In addition, the payment of premiums on traditional options and options on futures, must always be made in cash.

Intra-Day Margin

Based on its own risk assessment carried out during the course of a given trading day, the Clearing House reserves the right to demand from the Clearing Member a higher, or additional, amount of either cash collateral or those securities or rights to securities that are accepted by the Clearing House. Additional collateral must be deposited immediately in the appropriate currency in the appropriate account. The same right to demand supplemental collateral exists with respect to a General Clearing Member or a Direct Clearing Member vis-à-vis any Non-Clearing Members for which they clear.