VOLUME 23 - BULLETIN #145
TO:
|
ALL CLEARING PARICIPANTS
|
FROM:
|
CLIENT SERVICES AND SUPPORT
|
DATE:
|
November 3, 2003
|
SUBJECT:
|
Guaranty Fund Requirements
|
The Clearing Corporation (CCorp) sent the attached letter to all Clearing Participants on October 24, 2003. It enumerates the results of the realignment program and explains the structure of the Guaranty Fund at a high level. One of the issues addressed in the letter is that, in the absence of unusual conditions, CCorp does not intend to increase Guaranty Fund Requirements before year-end.
CCorp is pleased to announce that it will perform a reallocation of the Guaranty Fund immediately after completion of the Phase One transition to the Chicago Mercantile Exchange (CME) on November 24, 2003. This reallocation will have the effect of reducing Guaranty Fund requirements for all participants who maintain open positions or trade contracts to be transferred in Phase One. The reallocation is being performed to help clearing participants meet their security deposit requirements at the CME. Clearing participants who maintain cash or securities in the Guaranty Fund may withdraw such balances effective November 24th to the extent that their Guaranty Fund requirement decreases.
CCorp will perform a second reallocation on January 2, 2004, after completion of the Phase Two transition to the CME. This will likely reduce Guaranty Fund requirements to the minimum level of $200,000 (except for grandfathered sole proprietors whose minimum requirement is $75,000).
Should you have any questions, please call or e-mail one of the following Client Services and Support Representatives:
|
Printer
Friendly Version