CME Group(CME) - 2025 Q4 - Annual Report

Financial Position - The company has fixed-rate borrowings of $3.4 billion as of December 31, 2025, with no variable-rate borrowings [309]. - The company maintains a $7.0 billion multi-currency line of credit, with the option to increase it to $10.0 billion, to provide temporary liquidity in case of a clearing firm default [314]. - The company has a committed facility of up to $750.0 million for foreign currency conversions, subject to annual renewal [316]. - The clearing house has designated $150.0 million of corporate contributions to cover potential defaults by clearing firms [325]. Performance Bond and Risk Management - Aggregate performance bond deposits for clearing firms amounted to $347.3 billion, including cash performance bond deposits and letters of credit [317]. - The company has established performance bond requirements to cover at least 99% of expected price changes for a given product within a historical period [311]. - The company has assessment powers that could require non-defaulting clearing firms to contribute up to 550% of their existing guaranty fund requirements in the event of multiple defaults [320]. - The company has policies in place to monitor financial requirements for clearing firms, but these may not prevent defaults [312]. - The company assesses non-defaulting clearing firms based on potential obligations from the failure of the third and fourth largest clearing firms [325]. Foreign Currency Transactions - Aggregate transaction losses for foreign currency transactions were $(6.0) million in 2025, $(3.0) million in 2024, and $(12.9) million in 2023, indicating fluctuations in foreign currency gains/losses [324]. - Aggregate translation gains (losses) for 2025, 2024, and 2023 were $163.2 million, $(61.0) million, and $70.8 million, respectively [326]. - The exposure to foreign currency risk related to performance bond deposits is considered minimal and not expected to materially impact financial condition or operating results [327]. Credit Risk - The company is exposed to significant credit risk from third parties, including clearing firms and their customers, which may default on obligations [310]. - BrokerTec Americas had a collateral balance of $200.0 million at the Fixed Income Clearing Corporation as of December 31, 2025 [321].