As previously announced in Advisory Notice #08-212, clearing of the NYSE Liffe metals complex is transitioning from CME Clearing to the Options Clearing Corporation (OCC) for trading activity beginning on Sunday, March 29, 2009 for business date March 30, 2009. In order to properly complete the transition, we want to advise clearing member firms of their responsibilities before the end of March.
- Any clearing member firm that does not become a member of the OCC before March 24th must liquidate or transfer its positions to an OCC clearing member firm prior to Wednesday, March 25th. Delivery receipts for any non-OCC clearing member must also be tendered or transferred to an OCC clearing member firm by March 25th. If any new trading occurs after positions have been transferred/liquidated, clearing member firms must transfer or give-up these trades.
- These functions will be performed for you by CME Clearing if you do not act independently to liquidate or transfer positions as set forth above. (If CME Clearing has to act on behalf of a firm to liquidate or transfer positions, a fine may be assessed by the CME Clearing Risk Committee)
- All allocations must be claimed on Friday, March 27th prior to 6 p.m. CST.
In addition, we are advising clearing firms to complete their deliveries prior to Last Intent Day (LID). Any clearing firm that chooses to wait until LID to enter delivery intentions will have their deliveries managed through CME Clearing’s Delivery System as well as the NYSE Liffe Delivery System.
This process is outlined below:
Friday, March 27, 2009 – Last Trading Day NYSE Liffe Metals
- Any clearing member firms that have positions on the last day of trading will be obligated to fulfill its metals delivery.
- A clearing member firm will enter intent on this day in CME Clearing’s Deliveries System but the assignment process will occur in the NYSE Liffe Deliveries System.
- CME will transfer the open interest to the OCC and delivery information to NYSE Liffe.
- Open interest will be removed prior to ITD on Monday in CME Clearing’s systems.
- Invoices and delivery will be completed by NYSE/OCC per the metal contracts delivery schedule.
If there are any questions, please do not hesitate to contact CME Deliveries at 312.930.3172 or Clearing Services at 312.207.2525.