Chicago, 28 April 2010

As an enhancement to our Performance Bond Collateral schedule, firms are now able to post physical gold to CME Clearing to cover non-segregated (NSEG) Performance Bond requirements. Currently, gold is being posted to JP Morgan Chase Bank in London, England. In the near future, we hope to add additional depositories. There will be a 15% asset haircut on the market value of all gold deposits. Additionally, gold can be applied to 20% Core, 50% Reserve and 50% of concentration requirement for your particular firm. There is a firm asset limit of $200 million. These guidelines are subject to change and will be evaluated on a regular basis.

Fees for storage, insurance and handling are assessed by the custodian and passed on to the firms monthly. The total fees charged are subject to change but currently are 5bps. CME will send pre-notifications via email to back office managers each month which will reflect the date that these monies will be debited directly from your firm's house account.

Prior to posting physical gold as collateral to CME Clearing for house accounts:  1.  a clearing firm will need to execute an English law title transfer agreement in the form specified by CME Clearing, which will cover all subsequent deposits of gold. In order to obtain the title transfer agreement, please contact CME Clearing Financial Unit by phone at 312 207-2594 or via email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . '; document.write( '' ); document.write( addy_text74243 ); document.write( '<\/a>' ); //--> This e-mail address is being protected from spambots. You need JavaScript enabled to view it The title transfer agreement will ensure that CME Clearing has control over the collateral that is specified in CME rules, under English law, since the gold will be physically located in London.  2.  CME Clearing requires participating firms to complete and submit a Gold Collateral Movement Form prior to posting or withdrawing any gold collateral.

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