# Who is the issuer and the counter part of this instrument?

I have the following SWAP contract : T1UH4 which is a 2-Year Deliverable Interest Rate Swap.

Who is the issuer and the counter part of this SWAP in case I trade it ? Is it by default the CME Group ?

Thank you

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The counterparty could be practically anyone, since the rulebook says

51104. DELIVERIES ON EXPIRING FUTURES CONTRACTS
51104.A. Requirements for Participation in Delivery
For an account carried by a clearing member to make or accept delivery on an expiring futures contract,
the holder of such account is required to be:
1.  an Eligible Contract Participant, as that term is defined in Section 1a(18) of the Commodity
Exchange Act (7 USC §1a(18) and 17 CFR 1.3(m)), and
2.  either an IRS Clearing Member (CME Rule 90005.A.) or an IRS Participant registered with CME by an IRS Clearing Member (CME Rule 8F009. and CME Rule 90005.B.).


This may make you think you need to worry about counterparty risk quite a bit. However you are effectively facing CME since

51104.G. Clearing House Financial Safeguards
A futures contract made under these Rules shall be a Base Guaranty Fund Product subject to the
Clearing House financial safeguards provided by the General Guarantee Fund (CME Rule 802.A.).
An IRS Contract that is delivered or accepted for delivery in fulfillment of a futures contract made under
these Rules shall be an IRS Product subject to the Clearing House financial safeguards provided by the
IRS Guaranty Fund (CME Rule 8G07.)

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While linked to swaps, these are listed futures contracts like any other and are traded in open markets. They are not themselves swap contracts. Therefore there is no 'issuer' exactly, nor a counterparty, at least not the same sense as swaps.

See details here and here.

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In a futures contract, the exchange clearing house itselfs acts as/is the counterparty to both parties in the contract (and this is why the credit risk is heavily reduced). Futures are not issued (like other securities) but are created, whenever Open interest increases (and destroyed whenever Open interest decreases); the contracts are not between the original buyer and the original seller, but between the holders at expiry and the exchange house.

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