8-KMaterial AgreementsFinancial EventsExhibits & Filings

CME GROUP INC. 8-K Report, Material Agreement (May 6, 2019)

Filed May 6, 2019For Securities:CME

Summary

CME Group Inc. (CME) filed an 8-K on May 6, 2019, to report a material amendment to its credit facility. Specifically, on May 1, 2019, a subsidiary, Chicago Mercantile Exchange Inc., amended its 364-day multi-currency credit facility. This amendment, referred to as the Amended Credit Facility, increases the facility's capacity and clarifies its purpose. The Amended Credit Facility is a $7 billion revolving secured credit facility, with an option to increase it to $10 billion. Its primary intention is to provide temporary liquidity to CME in specific scenarios, including clearing member defaults, liquidity constraints, depositary defaults, or delays in CME's payment systems. The facility is secured by clearing firm guaranty fund contributions and performance bond assets from clearing members, offering a robust collateral backing.

Key Highlights

  • 1CME Group Inc. amended its existing 364-day multi-currency credit facility on May 1, 2019.
  • 2The amended facility, named the 'Amended Credit Facility', has an initial size of $7 billion.
  • 3The facility has the capacity to be increased to $10 billion.
  • 4The primary purpose of the Amended Credit Facility is to provide temporary liquidity to CME.
  • 5Specific scenarios for liquidity access include clearing member defaults, liquidity constraints, depositary defaults, or payment system delays.
  • 6The credit facility is secured by clearing member contributions and performance bond assets, acting as collateral.
  • 7The filing was made on May 6, 2019, reporting an event date of April 30, 2019.

Frequently Asked Questions

The main purpose of the Amended Credit Facility is to provide CME with temporary liquidity in situations such as a clearing member default, liquidity constraints, depositary default, or delays in CME's payment systems. This ensures operational stability and continuity.

The Amended Credit Facility has an initial revolving capacity of $7 billion and can be increased up to $10 billion.

The credit facility is secured by clearing firm guaranty fund contributions and performance bond assets deposited by clearing members.

Key parties include Chicago Mercantile Exchange Inc. (a subsidiary of CME Group Inc.) as the borrower, Bank of America, N.A. as the Administrative Agent, and Citibank, N.A. as the Collateral Agent and Collateral Monitoring Agent, along with certain existing banks.