Effective July 17, 2017, all EFP transactions must be submitted solely through CME ClearPort or CME Direct for purposes of submission to CME Clearing.
Submitting EFPs electronically through CME ClearPort or CME Direct reduces operational risk through a more streamlined and efficient process.
CME ClearPort is CME Group’s electronic platform for submitting allowable privately negotiated transactions for clearing, including EFPs.
If you currently submit EFPs to your Clearing Member Firm, who in turn submits the EFP to the Exchange, the process does not need to change for you. Your Clearing Member can continue to submit the EFP to the Exchange on your behalf. The primary difference in this submission process is that your Clearing Member Firm will need to set up your account in CME ClearPort for submission.
CME Group has been working with brokers, Clearing Member Firms and other market participants to ensure a seamless transition. If you currently use EFPs as part of your grain marketing or hedging strategies, please be sure to contact your Clearing Member Firm or broker to ensure you have adequate coverage by the July 17, 2017 migration deadline.
Upon establishing appropriate account setup through your Clearing Member Firm, you may use the following methods to submit EFPs:
1. Submit directly into the CME ClearPort User Interface
2. Submit through CME Direct
Contact firstname.lastname@example.org for further information.
Should you choose to submit EFPs on behalf of your own account, you can use what is called single-sided entry. Single-sided entry allows for you to “allege” an EFP directly to your counterparty, or to the third party that is acting on behalf of your counterparty.
As defined in Rule 538 (“Exchange for Related Positions”), an EFP needs to be submitted within the time period and in the manner specified by the Exchange and the Clearing House. The Market Regulation Department expects submission to occur as soon as possible following agreement on the relevant terms, which should be on the same day that the EFP is executed absent extenuating circumstances. If single-sided entry is being used, the EFP must be both alleged and accepted on the day that the terms were agreed to.
If account setup is established and you elect to submit EFPs directly into CME ClearPort or CME Direct, the regulatory responsibility to submit the transaction accurately and in a timely manner would fall on you as the end client.
When an error is made in the reporting of an EFP through CME ClearPort or CME Direct, the counterparties and/or the broker(s) may request a correction of the error within three business days by calling the Global Command Center at 1(800)-438-8616. Same day corrections to dual-sided, brokered transactions can be facilitated by the broker by canceling and rebooking through CME ClearPort or CME Direct. Additionally, single-sided entries may be modified by the submitter in CME ClearPort or CME Direct prior to the opposing party’s acceptance of the trade, and need only be voided by the GCC if already matched.
If you have additional questions about the electronic EFP submission process, please send them to MarketTechSales@cmegroup.com.
Please note that this document is to be used as a marketing piece solely to help you in the migration to submission of privately negotiated transactions via CME ClearPort or CME Direct. This is not a regulatory document. For the most up to date Rules and guidance on Exchange for Related Position transactions, please refer to the Exchange for Related Position Market Regulation Advisory Notice here: http://www.cmegroup.com/rulebook/rulebook-harmonization.html
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