Federal Register #SRCME2026001

SEC Review of CME Rule Change for Security Futures Margin Requirements

This opportunity concerns a regulatory rule change proposed by the Chicago Mercantile Exchange Inc. (CME) and published by the Securities and Exchange Commission (SEC): - Government Buyer: - Securities and Exchange Commission (SEC) - Division of Trading and Markets - Chicago Mercantile Exchange Inc. (CME) as the proposing entity - No OEMs or commercial vendors are involved, as this is a regulatory amendment, not a procurement of goods or services - Products/Services Requested: - Establishment and administration of customer-level margin (performance bond) requirements for security futures contracts - Minimum performance bond rate set at 15% of the current market value of security futures contracts - Procedures for market maker exclusions, exemptions for qualifying security futures dealers, and detailed performance bond administration - Recordkeeping and compliance requirements for margin administration - Unique/Notable Requirements: - Margin requirements and procedures must align with SEC Rule 242.403 and CFTC Regulation 41.45 - Exemptions and offsets for certain market participants, including market makers and qualifying dealers - Focus on investor protection and market integrity for cash-settled single stock futures - No specific products, part numbers, or quantities are being procured; this is a regulatory change to facilitate trading of security futures

Description

The Chicago Mercantile Exchange Inc. (CME) filed a proposed rule change with the Securities and Exchange Commission (SEC) to amend its rules governing performance bond requirements at the account holder level. The amendments specifically revise Rule 930 in Chapter 9 of the CME Rulebook to establish customer-level margin requirements for security futures products that CME intends to list for trading. The proposed changes include setting performance bond rates at no lower than 15% of the current market value of security futures contracts, establishing exceptions and offsets consistent with SEC and CFTC regulations, and defining market maker exclusions and performance bond administration procedures. The rule change aims to align CME's margin requirements with current SEC and CFTC standards and promote fair and equitable trading practices.

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