SEC approves CME Securities Clearing changes linking member forecasts to liquidity commitments

The SEC has approved changes to CME Securities Clearing’s Capped Liquidity Facility, including an onboarding requirement that connects expected trading activity to members’ contingent funding commitments. Its 13 October order approves filing SR-CMESC-2026-008, following a consultation that received no comments.[1]

The facility supports the Treasury clearing house when a participant default leaves its other liquidity resources insufficient or likely to be insufficient. Selected non-defaulting members must provide cash through repurchase transactions against eligible securities, up to their allocated amounts. The commitment therefore forms part of a member’s liquidity planning.[3]

Forecasts provide inputs before a trading history exists

Before clearing starts, a member must provide projected transaction volumes and sizes for itself and its authorised users. During the initial ramp-up, CME Securities Clearing will combine those estimates with actual cleared activity until it has the required historical lookback. The existing sizing and allocation methodologies are unchanged.[2]

The approved rules also make members parties to the facility’s repurchase agreement through Rule 410 itself, replacing the need for a separately executed agreement. This embeds the contractual funding obligation in the membership rules.[1]

Members receive their allocated amount after each resizing and acknowledge the obligation annually. For a firm expanding client clearing, expected customer activity therefore helps determine a potential cash call as well as anticipated business volume.[2]

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