Risk Management Tools


Introduction

 

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

 


Cancel on Disconnect

Upon an involuntarily dropped iLink user connection, Cancel on Disconnect (COD) cancels all resting session/day futures and options orders for that user. Customers are responsible for re-entering any orders cancelled by COD.

Features:

  • Free Service
  • Opt-in, subscription-based

Resources

CME Globex Credit Controls

The CME Globex Credit Controls (GC2) provide pre-execution risk controls and allow Clearing Firm Risk Administrators to set real-time credit limits. Clearing Firm Risk Administrators can define trading limits and select real-time actions if those limits are exceeded, including:

  • Email notification
  • Order blocking
  • Order cancellation

CME Globex Credit Controls are available in both manual and automated modes.

Manual Mode

  • Enables risk administrators to maintain manual credit control limits by setting a maximum order size and the capability to block new orders

Automated Mode

  • Automated credit control management defined by clearing firm risk administrators
  • View open and filled orders by executing firm
  • Auto cancel orders

Resources

 

Risk Management Interface (RMI)

The Risk Management Interface (RMI) is an API and GUI that supports granular, pre-trade risk management for Clearing Firms. The RMI consists of two components:

RMI Application Programming Interface (API)

Allows Clearing Firms to programmatically send instructions to:

  • Block/Unblock order entry by Execution Firm and Account and Exchange and Derivative Type and Side; Product designation optional
  • Query current block/unblock instructions
  • Cancel working orders, including Good Til Cancel (GTC) and Good Til Date (GTD) order types

RMI Graphical User Interface (GUI)

A web-based user interface that allows clearing firms to:

  • Block/Unblock order entry at the same levels as the API
  • View current blocks

Access to the RMI is limited to clearing firms' certified proprietary and third-party risk management applications.

Resources

Drop Copy

Drop Copy is available from CME Group, or certified third-party vendors. A monthly fee of $500 will be charged per Drop Copy group. The Drop Copy fee will be waived for the customer's first Drop Copy group. Certification via AutoCert+ is required to access Drop Copy in production.

Drop Copy allows users to:

  • Monitor orders and activity
  • Aggregate execution and reject messages

Third-Party Vendors

The following third-party vendors support the Drop Copy service. More information on these vendors is available at www.cmegroup.com/isv/.

FirmSoft

 

FirmSoft is a browser-based order management tool that provides real-time access to information on working and filled CME Globex orders including iLink and CME Direct across multiple firm IDs. FirmSoft provides important risk mitigation functionality during system failures.

Watch a video for an overview of FirmSoft functionality.

 

Users can view:

  • Current order status
  • Fill information, including partial fills and fills from mass quotes
  • History of cancel and replace requests
  • CME Globex timestamps

If enabled to do so, users can cancel

  • An individual order
  • Group of orders
  • All working orders and mass quotes

Users can call into the GCC to status and/or cancel orders based on their FirmSoft permissions.

Features

  • CME Group Login registration and profile management platform
  • Improved clearing firm administration tools
  • Secure Socket Layer (SSL) Internet connectivity

Requesting Access

New users will need to:

Clearing Firm Administrator Access

To request access to the Clearing Firm Administration tools within FirmSoft:

 

Kill Switch

 

Kill Switch is a GUI that is designed to allow firms a one step shutdown of all their CME Globex activity at the SenderComp ID level.

When the Kill Switch functionality is activated by the permissioned firm, all order entry is blocked and all working orders are cancelled for either a selected subset or all, of firm’s SenderComp IDs.

Kill Switch functionality includes:

  • Day Orders and Good Till messages are blocked when Kill Switch is invoked, however, Kill Switch will not cancel resting Good Till or Day Orders when a market is "closed" or in the final "30 seconds" prior to an open.
  • Impacted customers are prevented from submitting any message other than what is required to keep alive the connection with the exchange (session management).
  • Only orders intended for CME Group core match engines are supported.
  • Customers receive a reject message with entity level and administrator role information.
  • Blocking takes less than one second, though the cascading cancellations may extend beyond this time frame.

Resources

 

CME Globex Self-Match Prevention

Self-Match Prevention ("SMP") is an optional functionality designed to allow executing firms to prevent, where appropriate, buy and sell orders for accounts with common beneficial ownership, from matching with each other.

To register for the SMP functionality customers must register via the Firm Administrator Dashboard to obtain their SMP ID(s).

Resources

 

More on CME Globex

New Customers
A step-by-step guide to connecting and developing to the CME Globex electronic trading platform.

Development Overview
This section provides an overview of iLink order entry interface to CME Globex and market data interface for CME Globex.

CME Globex Reference Guide
Provides overview of CME Globex, products, access, functionality, practices and policies, market operation.

Resources

Risk Management Video
Overview of Risk Management Tools and Services

CME Group Login
CME Group Login is a self-managed, centralized user profile service that authenticates access to CME Group applications and services.

CME Client Systems Wiki
Get technical and business information for systems development to CME Globex.

GCC
Support from the CME Global Command Center (GCC).

Contact Us

Global Account Management (GAM)
U.S.: +1 312 634 8700
Europe: +44 20 3379 3754
Asia: +65 6593 5505
globalaccountmanagement@cmegroup.com

CME Global Command Center
U.S.: +1 800 438 8616
Europe: +44 20 7623 4747
Asia: +65 6532 5010
Email: gcc@cmegroup.com
Website: www.cmegroup.com/gcc

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