CME Group, the owner of global derivatives and clearing marketplaces, is joining forces with bank transfer platform vendor Dwolla to offer real-time, on-demand payment capabilities for clearing and settlement. The agreement will also streamline payment operations for CME Clearing members and clients, officials say.
The first application of Dwolla’s technology will be applied to CME Group’s Broker Payment Systems and Give Up 
Payment Systems “and will enable customers to process payments more quickly and cost efficiently,” CME Group officials say. The agreement marks the first time Dwolla’s offerings will be used in the exchange space.
“As we continue to explore additional applications of Dwolla’s technologies and the resulting efficiencies to be gained, we are pleased with the immediate value we will deliver to our clearing members,” says Sunil Cutinho, president of CME Clearing, in a prepared statement.
Aside from the commercial arrangement, CME Group is a strategic investor in Dwolla via its investment arm, CME Ventures, officials add. “CME Group has helped Dwolla bring real-time technology to the derivatives industry to enable faster access to liquidity and funding for the industry,” said Ben Milne, CEO and founder of Dwolla, in a statement.
In addition to its traditional bank transfers, Dwolla’s network provides financial institutions with a real-time payments platform with its proprietary protocol, FiSync, officials say. “Live since 2012, the secure connection provides banks an interoperable private-by-default ledger and mechanism that enables real-time clearing and settlement services, specifically the confirmation and availability of good funds,” according to Dwolla.
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