VOLUME 20 - BULLETIN #359
TO:
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ALL CLEARING MEMBERS
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FROM:
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BUSINESS SYSTEMS GROUP
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DATE:
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December 19, 2000
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SUBJECT:
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Original Margin Collateral Processing Changes
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Effective Friday, December 22, the Board of Trade Clearing Corporation is enhancing its margin collateral management system to effect morning margin deficit calls and margin cash releases via the S.W.I.F.T. network. In conjunction with this systems enhancement, certain business practices will be modified.
Original Margin Cash Releases
Effective Tuesday, December 26th, if a Member Firm has an original margin deficit call and wishes to substitute securities (and have cash returned), the Clearing Corporation will return all USD (by origin) in excess of the original margin requirements. The cash returned will be all excess cash, not just the cash that was drawn from the firm’s account to cover the morning’s deficit call. The cash will be returned upon notification from the settlement bank that the security has been delivered to the Clearing Corporation’s custody account.
On days in which a security matures into USD cash, all USD cash that is in excess of the margin requirement (by origin) will also be returned to the member. Members must still call the Clearing Corporation by 9:00 a.m. on any day to request the release of cash margin previously held overnight and not automatically released per the events noted above.
Minimum Amounts
The minimum amount of each cash release will be $1,000 and all releases will be in increments of $1,000 up to the total amount of cash being held by the Clearing Corporation (by origin). All cash returned to the member firms will be released by the Clearing Corporation at 2:45 p.m. each day.
Should any member desire the Clearing Corporation to hold any or all of the cash that would have been returned to the member due to margin activity noted in the previous paragraphs, the member must notify the Clearing Corporation’s Treasury Operations department at 312-786-3860 by 9:00 a.m. that day.
If you have any questions, please contact the Treasury Operations department at (312) 786-3860.
Should you have any other questions, please call or e-mail one of the following Business Systems Analysts:
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