For Release: March 4, 2008
CFTC Approves Program Designed to Allow for Increased Capital Efficiency and Transparency
Washington, DC – The Commodity Futures Trading Commission (CFTC) has issued an Order under Section 4d of the Commodity Exchange Act (CEA) that will permit ICE Clear US, Inc. (ICE Clear) and the Options Clearing Corporation (OCC) to establish a non-proprietary cross-margining program.
Specifically, this program will enable eligible market professionals, clearing through participating clearing brokers, to carry certain positions in futures or options on futures that are cleared by ICE Clear, in an account with certain related securities option positions cleared by OCC. This program will mean lower margin requirements for market professionals, allowing them to use their capital more efficiently. For clearing houses, it will mean reduced market risk through the use of risk-offsetting positions as collateral, while increasing the transparency of positions.
The CFTC has previously issued similar Orders under Section 4d of the CEA that permit the creation of other proprietary and non-proprietary cross-margining programs.
Copies of the Order may be obtained from the Commission’s Office of External Affairs, Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581, 202-418-5080, or from the Commission’s website: http://www.cftc.gov.
R. David Gary
Last Updated: March 4, 2008