Summary
CME Group Inc. (CME) has filed an 8-K report detailing the renewal of its 364-day revolving credit facility on October 12, 2007. This facility, with a principal amount of up to $800 million, is designed to provide temporary liquidity to CME's subsidiary, Chicago Mercantile Exchange Inc. (CME), in specific scenarios. These scenarios include instances where CME needs to utilize the security deposits and performance bonds of its clearing members to cover obligations of defaulting members, or when disruptions in money transfer systems impact CME's operations.
Key Highlights
- 1Renewal of a 364-day revolving credit facility for Chicago Mercantile Exchange Inc. (CME), a subsidiary of CME Group Inc.
- 2The credit facility has a maximum amount of $800 million.
- 3The purpose of the facility is to provide temporary liquidity for CME during specific operational circumstances.
- 4Circumstances include covering obligations of defaulting clearing members using their security deposits and performance bonds.
- 5The facility also addresses liquidity needs arising from disruptions in money transfer systems.
- 6The credit facility is collateralized by clearing firm security deposits and performance bonds held by CME.
- 7The agreement allows for a potential increase in the credit line to $1 billion, subject to participating banks' approval.