Non-Member Broker Intermediary – Tiered Account Structure for Clearing Members

  • 6 Oct 2016
  • By CME Group
  • Topics: Credit

This clearing model allows a CM to permission a Non-Member Broker Intermediary to create and manage their customers in CME ClearPort.

Benefits for CME Clearing Members

  • Simplified account and credit management
  • Management of credit at the master account level whileNon-Member Broker Intermediaries manage credit at trading sub-account level independently
  • Save time, money and regulatory burden without having to on-board account customers which is now done by Non- Member Broker Intermediary
  • Participate in CME Clearing for broader customer base

How to Setup Non-Member Broker Intermediary Account Structure:

Setting up a Non-Member Broker Intermediary account is the same process as creating a standard ClearPort account. Just check the box on the Account Setup page next to ‘NCM Account’ as highlighted below.

To set up Non-Member Broker Intermediaries account the sub account owner will need to be ClearPort Registered

If a firm is not registered, they must visit www.cmegroup.com/clearport/registration.html and have a risk admin register for Account Manager.

Steps for Account Setup

1. Create Non-Member Broker Intermediaries accounts via ClearPort Account Manager

  • Create Account Number
  • Enabled for ClearPort Clearing
  • Select Account Owner (account owner will be the Non-Member Broker Intermediary firm name)
  • Check box for “NCM Account”

2. Set Market Permissions for Non-Member Broker Intermediary account

  • Choose which markets accounts will have access to
    • To give access to all products at an exchange select all
    • To permission on an individual product level select specific and choose products on the next page

3. Set Broker Permissions

  • Select Brokers that Non-Member Broker Intermediaries will be allowed to choose from when assigning permissions to sub-accounts

Note: only brokers enabled at the Non-Member Broker Intermediaries Account level will be available for at the sub account level* 4. Set the risk levels of Non-Member Broker Intermediary account

  • Apply overall Non-Member Broker Intermediary account credit limit amount in RAV field
    • Quantity credit limits on individual products that will filter to sub-accounts can also be set
    • To edit credit levels click on “Credit Control Info”

Note: Trading sub accounts will inherit: SEG TYPE, CTI code, market permissions, product permissions, and broker permissions from the clearing account. These fields will not be editable on a trading sub account level.

Inform Risk Administrator at Non-Member Broker Intermediary of account availability

Contact the onboarding team at EASE_OTC_Request@cmegroup.com with any questions.

About CME Group

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