News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

CME boosts swap margin amid US debt uncertainty

The exchange operator has asked customers to set aside larger sums to back up swap positions because of uncertainty around the US debt-ceiling debate

Exchange operator CME Group said on Tuesday it would require customers to set aside larger sums to back up some swap positions because of uncertainty around the US debt-ceiling debate, according to a notice sent to customers.

CME's clearinghouse plans to increase margin requirements- the deposits that investors must put down to cover their trading positions-for over-the-counter interest-rate swap portfolios by 12% beginning on Wednesday, "due to the additional uncertainty brought by the debt ceiling debate," according to the notice.

WSJ Logo