The financial integrity of the CME marketplace is a foremost consideration of the Exchange's Board of Directors and management. Risk management and financial surveillance are the two primary functions of the CME's financial safeguard system. The system is designed to provide the highest level of safety and the early detection of unsound financial practice on the part of any clearing member. The system is constantly being updated to reflect the most advanced risk management and financial surveillance techniques. The CME bases these requirements on historical price volatilities, current and anticipated market conditions, and other relevant information.
Levels vary by product and are adjusted to reflect change in price volatility and other factors.
Both initial and maintenance performance bonds are good faith deposits to guarantee performance on futures and options contracts. Should performance bonds on deposit at the customer level fall below the maintenance level, Exchange rules require that the account be re-margined at the required initial performance bond level.