CME Clearing is the world’s largest derivatives clearing organization, clearing approximately 90% of all futures and options on futures traded in the United States. An operating division of CME, CME Clearing is the central counterparty and guarantor for two of the largest and most diverse financial exchanges in the world, handling over 1.5 billion futures, options on futures and OTC transactions worth more than $788 trillion in notional value in a single year.

Our clearing function ensures the safety and soundness of the markets we clear and helps differentiate us from our competitors. We serve the risk management needs of customers around the globe by offering clearing services for the widest range of benchmark financial products. In addition to clearing for CME, Chicago Board of Trade (CBOT), and One Chicago, CME Clearing also provides clearing services for OTC transactions through CME Auction Markets™, and CME Clearing360™.

With CME Clearing being substituted as the counterparty to every trade matched or submitted in the clearing process – the risk of default is greatly reduced. The financial integrity of CME Clearing is a foremost consideration of CME’s Board of Directors, Clearing House Risk Committee, and management. CME is vitally aware of its role in international financial markets and believes that its financial safeguard system, designed for the benefit and protection of both clearing members and their customers, is second to none.

In the event of a default, as of December 31, 2007, CME Group may draw on all or a portion of the following resources to satisfy the outstanding obligation: