In each of our clearing houses, we work to optimize capital efficiency for clearing participants around the world while maintaining optimal levels of initial and intraday margin to safeguard the global marketplace. The specific margin methodologies used vary based on the risk characteristics of the clearing house’s cleared products, but an overview can be seen below.
SPAN® Margin Model
The SPAN® margin model is used at most of ICE’s clearing houses to calculate futures and options margin on at least a daily basis. Initial margin is a returnable deposit based on your open positions and any possible margin offsets. While members may be required to provide additional margin to cover concentration risk, illiquid positions or wrong-way risk, we continually evaluate your portfolio to realize margin offsets.
CDS Clearing Account Types
We provide individual segregation, omnibus segregated client accounts, and co-mingled general accounts to help you choose the model that best meets the risk profile you want to achieve. High degrees of segregation provide high degrees of protection, but that will be a more costly solution when compared to omnibus accounts where your firm’s positions are co-mingled with other customers’ positions. We provide various options to consider and our experienced specialists can help you understand the features of each account type so your firm can determine the balance of risk and cost that best suits your business.
SPAN® is a registered trademark of Chicago Mercantile Exchange Inc., used herein under license. Chicago Mercantile Exchange Inc. assumes no liability in connection with the use of SPAN® by any person or entity.
Neither Intercontinental Exchange, Inc. nor any of its affiliates is the source of SPAN®. The SPAN® methodology was developed by Chicago Mercantile Exchange Inc. and is used by Intercontinental Exchange, Inc. and its affiliates to develop customized versions of SPAN®. SPAN® is a registered trademark of Chicago Mercantile Exchange Inc., used herein under license. Chicago Mercantile Exchange Inc. assumes no liability in connection with the use of SPAN® by any person or entity.