8-KMaterial Agreements

CME GROUP INC. 8-K Report, Material Agreement (Oct 19, 2005)

Filed October 19, 2005For Securities:CME

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.

Frequently Asked Questions

The credit facility is designed to provide CME with temporary liquidity. This liquidity is specifically intended to cover situations where CME needs to satisfy obligations of a defaulting clearing member, as outlined in the CME Rulebook, or in instances where money transfer systems disrupt CME's operations.

The revolving credit facility has an initial limit of $750 million. However, it includes provisions for the Board of Directors of CME to authorize an increase in this line of credit, potentially up to $1 billion.

The credit facility is collateralized by the security deposits and performance bonds that CME holds from its clearing members. This means CME is pledging these assets to secure the borrowed funds.

The credit facility was renewed on October 14, 2005, and it is a 364-day revolving credit facility, meaning it is set to expire approximately one year from the renewal date.