Summary
Chicago Mercantile Exchange Holdings Inc. (CME) announced the renewal of its 364-day revolving credit facility on October 14, 2005. This facility, for its subsidiary CME, is initially set at $750 million and can be increased to $1 billion upon authorization by CME's Board of Directors. The credit line is designed to provide temporary liquidity for CME's operations, specifically to cover obligations arising from defaulting clearing members or disruptions in money transfer systems. The Credit Facility is collateralized by the security deposits and performance bonds held by CME from its clearing members. This filing is significant for investors as it indicates CME's proactive approach to managing financial risk and ensuring operational continuity through secured borrowing arrangements. The substantial credit limit suggests a robust financial standing and preparedness for potential market volatilities or clearing member defaults.
Key Highlights
- 1CME Group Inc. (CME) renewed its 364-day revolving credit facility on October 14, 2005.
- 2The credit facility is for its wholly owned subsidiary, Chicago Mercantile Exchange Inc. (CME).
- 3The initial credit line is up to $750 million.
- 4The credit line has the potential to be increased to $1 billion by the Board of Directors.
- 5The facility is intended to provide temporary liquidity for CME's operations.
- 6Funds can be used to cover obligations from defaulting clearing members or disruptions in money transfer systems.
- 7The credit facility is collateralized by clearing firm security deposits and performance bonds.