This advisory provides updated information on CME’s implementation schedule for LSOC phase 2, often called "LSOC with excess", "LSOC with client-specific value reporting", or "LSOC with client-specific excess."
CME Clearing will begin allowing firms to operate in LSOC phase 2 mode – LSOC with daily client-specific collateral value reporting – on Monday, April 22, 2013.
There is no requirement that firms begin operating in LSOC with excess mode on that date, and we anticipate a transition process occurring over a period of several months, as firms test and go live with LSOC phase 2. CME has not established a date by which firms must convert, and may allow firms to continue operating in LSOC phase 1 mode indefinitely.
Firms may begin testing their submissions of daily collateral value reports at any time. We expect full-scale parallel testing to begin with a subset of firms around March 1.