CME initial margin model
CHICAGO, Nov. 5, 2011 /PRNewswire/ - CME Group today is clarifying its notice to clearing firms regarding margins. In light of the issues customers transferring out of MF Global are facing, while still maintaining appropriate risk management protections for the market, CME Clearing is setting the "initial" margin upcharge to zero. This upcharge is normally applied to customer accounts when they are receiving a margin call.
The intention and effect of these changes are to decrease the size of any margin calls resulting from the bulk transfer of MF Global customers to new clearing members not to increase them.
This is a short term accommodation to maintain market integrity and provide temporary relief to customers whose accounts have been disrupted by this event.
We apologize for any confusion our initial advisory may have created.
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What is the current initial margin requirement for the CME E-Mini Russell2000 futures contract in $USD terms?
According to Eurex US, Maintenance Margin Level for Russell 2000 is USD 1,500, Initial Margin Level is USD 1,950