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If we consider quarterly (or serial, or mid-curve) SOFR options, traded on CME. Are those options subject to margining? It is clear to me that their underlying (say, 3M SOFR futures) is margined as well as those options are of American style.

The margining style is not clearly specified in option contract specification: https://www.cmegroup.com/trading/interest-rates/secured-overnight-financing-rate-options.html

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    $\begingroup$ Putting it other way: if I buy SOFR option, do I pay the premium upon the purchase? $\endgroup$ Nov 13, 2023 at 23:16
  • $\begingroup$ I believe (someone may correct me if I am wrong) that none of the futures options currently listed on the CME are "futures style margining", all (the ones that I know) are "equity style margining" also known as "premium paid up front" margining. the difference is explained here cmegroup.com/education/articles-and-reports/… $\endgroup$
    – nbbo2
    Nov 14, 2023 at 4:43

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