CME Proposes New Margin Safety Rules
Published Date: 6/8/2026
Notice
Summary
The Chicago Mercantile Exchange (CME) wants to update its rules about how much money account holders need to keep as a safety net when trading security futures. These changes affect traders using CME and aim to keep the market safer and smoother. The new rules are proposed now and could impact how much money traders must set aside soon.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 3 costs, 0 mixed.
Minimum 15% Margin Requirement
CME proposes that customer margin (performance bond) for each long or short security futures position must be at least 15% of the contract's current market value, in line with SEC Rule 242.403 and CFTC Regulation 41.45. This 15% standard is the floor for initial or maintenance margin for security futures on CME.
Underfunded Accounts: Net Capital Deductions & Liquidation
CME would require a security futures intermediary to deduct underfunded accounts when computing its net capital if a customer fails to meet a performance bond call within a reasonable time, and to liquidate accounts where there is a liquidating deficit, consistent with SEC Rule 242.406 and CFTC Regulation 41.48. These rules authorize intermediaries to take capital deductions and liquidate deficient customer positions.
Allowed Offsets for Hedged Positions
CME's rule would permit performance bond offsets for offsetting security futures and related positions as allowed under SEC Rule 242.403(b)(2) and CFTC Regulation 41.45(b)(2), using offset strategies aligned with the SEC/CFTC 2020 Customer Margin Release. Those offsets may result in lower combined margin for qualifying hedged combinations.
Market Maker Exclusion and Qualifications
CME proposes to exclude qualifying security futures dealers (market makers) from customer performance bond requirements if they are CME members, registered as dealers under Section 15(b) of the Act, and meet quoting and trading activity standards. Qualifying standards include continuous two-sided quotations with spreads no wider than the greater of $0.20 or 150% of the primary market spread, or responding to ≥75% of RFQs within five seconds, and, after 181 days, representing a minimum of 20% of security futures trading volume in certain alternatives; recordkeeping is required and failure may lead to revocation or sanctions.
Permitted Collateral Types and Valuation
CME would limit acceptable performance bond collateral to cash, margin securities (with restrictions), exempted securities, assets permitted under Regulation T, or combinations, and require valuation consistent with SEC Rules 242.404 and CFTC Regulations 41.46. Intermediaries may not accept securities issued by the customer or an affiliate without Exchange permission, and deposited assets must remain unencumbered.
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