ClearPort
CME ClearPort is a comprehensive clearing service that provides secure post-trade processing for over-the-counter (OTC) derivatives transactions. It serves as a critical bridge between OTC markets and centralized clearing, offering risk management and operational efficiency for market participants.
How ClearPort works
ClearPort functions as an interface between OTC market participants and central counterparty clearing. The platform follows a structured workflow:
Key features and capabilities
Trade registration
ClearPort supports multiple methods for submitting trades:
- Front-end user interface
- Direct API connectivity
- Broker submission platforms
- Third-party platforms
Risk management
The platform incorporates comprehensive risk controls:
- Real-time credit checks
- Position limit monitoring
- Collateral management
- Counterparty exposure tracking
Next generation time-series database
QuestDB is an open-source time-series database optimized for market and heavy industry data. Built from scratch in Java and C++, it offers high-throughput ingestion and fast SQL queries with time-series extensions.
Market coverage
ClearPort provides clearing services across multiple asset classes:
- Energy products
- Agricultural commodities
- Metals
- Foreign exchange
- Interest rate products
Integration with trading systems
ClearPort interfaces with various trading platforms and market participants:
- Broker-dealers
- Clearing firms
- End users
- Market makers
Regulatory compliance
ClearPort helps market participants meet regulatory requirements by:
- Providing transparent audit trails
- Supporting regulatory reporting obligations
- Maintaining compliance with clearing mandates
- Facilitating risk controls
Business benefits
For clearing firms
- Reduced counterparty risk
- Streamlined operations
- Enhanced risk management capabilities
- Improved regulatory compliance
For traders
- Access to centralized clearing
- Reduced operational complexity
- Standardized processing
- Better risk management
Technology infrastructure
ClearPort leverages robust technology to ensure reliable clearing services:
- High-availability systems
- Real-time processing capabilities
- Secure connectivity options
- Integration with CME clearing systems
Market impact
ClearPort has significantly transformed OTC derivatives clearing by:
- Standardizing post-trade processes
- Reducing systemic risk
- Improving market transparency
- Enhancing operational efficiency
The platform continues to evolve with market needs and regulatory requirements, maintaining its position as a crucial component of modern financial market infrastructure.