Risk Management Tools

We offer seven risk management tools, designed to protect CME Globex customers and clearing firms:

Please Note: In order to access any of these tools (except Drop Copy), users will need a CME Group Login and token as well as permission from a Clearing Firm Administrators.


CME Globex Credit Controls

The CME Globex Credit Controls (GC2) is an exchange provided GUI available to clearing firms only, that allows Clearing Firm Risk Administrators to set pre-execution risk controls. Administrators can choose a set of real-time actions to follow if specified limits are breached, including e-mail notifications, order blocking, and order cancellation.

Access

Clearing Firm Risk Administrators are enabled by Clearing Firm Administrators via Schedule 6 Exhibit C.

New users must:

  • Create a CME Group Login and profile.
  • Login to the CME Customer Center and request a token.
  • Give your CME Group Login ID and token to your Clearing Firm Administrator.

If you do not know who your Clearing Firm Administrator is, please contact Global Account Management.

Resources

Globex Credit Controls (GC2) Overview

Risk Management Interface (RMI)

The Risk Management Interface (RMI) consists of a Web Services API and a user interface (GUI) which is available to clearing firms only:

  • The RMI API allows clearing firms to programmatically block/unblock order entry and cancel working orders at the account level. All applications must be certified to the RMI API
  • The RMI GUI is a web-based user interface that allows clearing firms to block/unblock order entry at the account level and view current blocks.

Access

Access to the RMI API is limited to certified RMI applications. Please contact Global Account Management to begin the RMI API certification process.

The RMI GUI is only available to Clearing Firm Risk Administrators. Users must be enabled by Clearing Firm Administrators via Schedule 6 Exhibit C.
New users must:

  • Create a CME Group Login and profile.
  • Login to the CME Customer Center and request a token.
  • Give your CME Group Login ID and token to your Clearing Firm Administrator.

If you do not know who your Clearing Firm Administrator is, please contact Global Account Management.

Resources

Risk Management API

Risk Management Interface Message Specification

Risk Management Interface: Overview for Clearing Firms & Third-Party Providers (PDF)

 

FirmSoft

FirmSoft is a browser-based order management order management tool that provides customers real-time access to information on working and filled CME Globex orders. FirmSoft serves as a reliable alternative to view order status, view fill information, and cancel working orders originating from CME Direct, proprietary, and third-party trading systems.

Access

Access is granted via CME Clearing Firm FirmSoft Administrator.

New users must:

  • Create a CME Group Login and profile.
  • Login to the CME Customer Center and request a token.
  • Give your CME Group Login ID and token to your Clearing Firm Administrator.

Existing users:

Login to the new version of FirmSoft

Login to FirmSoft Administration

Resources

Watch a video for an overview of FirmSoft functionality.

Kill Switch

Kill Switch is an exchange provided GUI that allows clearing firms and permissioned executing firms a one-step shutdown of CME Globex activity at the Clearing Firm level, Globex Firm level and/or by SenderComp IDs.  When Kill Switch is activated, order entry is blocked and working orders are cancelled for selected SenderComp IDs.

Kill Switch will cancel orders during the following market states: Pre-open, Open, Pause, Post Close Pre-Open, Reserve.  Kill Switch will not cancel resting Good Til or Day Orders when a market is "closed" or in the final "30 seconds" prior to an open.

Please contact the GCC to confirm order status.

Only orders intended for CME Group core match engines are supported.

Access

Kill Switch is available to both Clearing Firm Risk Administrators and Executing Firm Risk Administrators.

To access Kill Switch, Risk Administrators must be enabled by Clearing Firm Administrators via Schedule 6 Exhibit C.

New users must:

  • Create a CME Group Login and profile.
  • Login to the CME Customer Center and request a token.
  • Give your CME Group Login ID and token to your Clearing Firm Administrator.

If you do not know who your Clearing Firm Administrator is, please contact Global Account Management.

Resources

Kill Switch Functionality

 

Drop Copy

Drop Copy service allows market participants to receive real-time copies of CME Globex Execution Report and Acknowledgment messages as they are sent over iLink order entry system sessions on a separate, dedicated path. Drop Copy aggregates iLink messages, enabling market participants to aggregate positions and monitor orders across iLink sessions guaranteed by one or more clearing firms. Non-clearing market participants must have their clearing firm’s approval in order to have iLink sessions guaranteed by that clearing firm added to a drop copy group.

A monthly fee of $500 will be charged per Drop Copy group. The Drop Copy fee will be waived for the market participants first Drop Copy group. A certified application is required to access Drop Copy in production.

Access

To begin the Drop Copy certification or on-boarding process, please contact Global Account Management:

U.S. +1 312 634 8700

Europe +44 20 3379 3754

Asia +65 6593 5505

GlobalAccountManagement@cmegroup.com

Third-Party Vendors

A list of third-party vendors certified for drop copy can be found at www.cmegroup.com/partner-services.

 

CME Globex Self-Match Prevention

CME Globex Self Match Prevention is optional functionality that allows an executing firm to prevent the matching of orders for accounts with common ownership if both the buy and sell orders contain the same Self Match Prevention Identifier (SMP ID) and Executing Firm ID.

Self-Match Prevention functionality includes:

  • Self-Match Prevention - prevent the matching of orders for accounts with common ownership.
  • Self-Match Prevention Instruction - dictate which order is cancelled in the event of self-match prevention, resting or aggressing.
  • Self-Match Execution - (FIFO markets only) prevent self-match prior to execution.

SMP IDs are generated via the Firm Administrator Dashboard.

Access

Access to the FADB is granted by the Registered Entity Admin Manager via User Administration or by a Clearing Firm Administrator.

New users must:

  • Create a CME Group Login and profile.
  • Login to the CME Customer Center and request a token.
  • Give your CME Group Login ID and token to your Clearing Firm Administrator.

Resources

CME Globex Self-Match Prevention Functionality Overview

CME Globex Self- Match Prevention Functionality FAQ

Cancel on Disconnect

Cancel on Disconnect (COD) is CME Globex functionality that cancels all resting session/day futures and options orders for registered iLink session IDs upon an ungraceful disconnect. Customers are responsible for re-entering any orders cancelled by COD. All iLink sessions are created with COD enabled. Clearing Firm Administrators can disable COD via the Firm Admin Dashboard.

Resources

Cancel on Disconnect

Inline Credit Controls (ICC)

CME Group offer optional, granular pre-trade risk management capability through the Inline Credit Controls (ICC). ICC allows Clearing Member Firms and Globex Executing Firms to set daily position limits for CME Globex, per product, at the account level through the Account Manager tool.

ICC functionality features include:

  • Daily quantity position limits applied per product at the account level.
  • Positions reset to flat at the end of the day. Good 'Til Cancel (GTC) and Good 'Til Date (GTD) orders will roll-over to be calculated in the next day’s working orders.
  • No latency differential; all Globex orders are subject to the same ICC processing, whether an account is registered for ICC or not.
  • Both Clearing Member Firm and Globex Executing Firm Risk Admins can register accounts and set limits.
    • The most restrictive limit always applies.
    • Clearing Member Firm and Executing Firm Risk Admins may view each other's account limits and cannot change the other's limit.
  • Email alerts can be configured for pre-set threshold level breaches (for example, at 80%)

Access

ICC is available to Clearing Firm and Executing Firm Risk Administrator

To access ICC, Risk Administrators must be enabled by Clearing Firm Administrators via Schedule 6 Exhibit C.

New users must:

  • Create a CME Group Login and profile.
  • Login to the CME Customer Center and request a token.
  • Give your CME Group Login ID and token to your Clearing Firm Administrator.

Resources

Inline Credit Controls Overview

Contact Us

Global Account Management
U.S.: +1 312 634 8700
Europe: +44 20 3379 3754
Asia: +65 6593 5505

Global Command Center
U.S.: +1 800 438 8616
Europe: +44 20 7623 4747
Asia: +65 6532 5010
GCC Website

Certification Support for Electronic Trading (CSET)
U.S.: +1 312 930 2322
Europe: +44 20 3379 3803
Asia: +65 6593 5593

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