CME Group Adopts New Exchange Rules on Sanctioned Parties

The CME Group, comprised of CME, CBOT, NYMEX and COMEX, adopted new rules on access and authorizations to member exchanges by sanctioned parties.

The CME Group, adopted new Rule 543 ("Restrictions on Access for Sanctioned Parties and Jurisdictions") providing that (i) any market participant who is a sanctioned party is not permitted access to the Exchanges, and requiring, among other things, that (ii) Exchange Clearing Members either cancel all direct and indirect access and authorizations if they become aware that an account is held for the benefit of a sanctioned party or provide written instructions to the Exchange directing it to assist and coordinate the cancellation of such access and authorizations.

The CME Group also adopted amendments to Rules 930.C ("Acceptable Performance Bond Deposits") and 960 ("Omnibus and Carrying Broker Accounts") clarifying that debt and equity issued by sanctioned parties do not comprise an acceptable performance bond. The CME Group Advisory Notice states that "Amendments to Rule 960 require that Exchange Clearing Members notify any holder of an omnibus account they carry of the restrictions against dealing with sanctioned parties, and require the holder of the omnibus account to do the same with respect to omnibus account customers."

Both the new Rule 543 and the amendments to Rules 930.C and 960 will become effective on February 29, 2016.