• Revisions to CME Cleared OTC FX Product Chapters in Connection with the CME Rulebook Harmonization Project

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-6610
      • Notice Date
      • 28 March 2013
      • Effective Date
      • 01 April 2013
    • Recently, CME adopted a series of revisions to its product chapters, which were announced via Special Execution Report S-6450R on December 17, 2012. This Special Executive Report is being issued to notify the marketplace of the effective date for the revisions to the CME cleared over-the counter (“OTC”) foreign exchange (“FX”) spot, forward and swap product chapters, which will be April 1, 2013, pending all relevant regulatory review periods.
      The revisions are being adopted to ensure that the Exchange’s rules remain in compliance with CFTC Designated Contract Market (“DCM”) Core Principle 7 (“Availability of General Information”), which requires that DCMs make available to the public accurate information concerning the contract market’s rules and regulations, contracts and operations. Correspondingly, the goal of the CME Rulebook Harmonization Project was to eliminate outdated and obsolete language, ensure the accuracy of all listed numerical values (e.g, trading units, tick sizes, etc.) and harmonize the language and structure of the CME product chapters, to the greatest extent possible. The revisions are primarily stylistic in nature and include the following:
      ·         Product-specific position limits, accountability and reportable levels have been eliminated and been replaced with standardized language that directs the reader to the Position Limit, Position Accountability and Reportable Level Table in the Interpretations & Special Notices Section of CME Chapter 5
      ·         Product-specific position limit exemption and accumulation language has been eliminated and replaced with standardized language referring to applicable rules
      ·         With the exception of Chapter 300, the notional value/contract equivalent language in each of the non-deliverable product chapters has been removed and relocated in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations & Special Notices Section of CME Chapter 5
      ·         A boilerplate reference to Chicago time has been added in each chapter’s Scope of Chapter section
      ·         Typos regarding the applicable standard OTC non-deliverable forward (“NDF”) settlement rate have been corrected in the Day of Cash Settlement section in certain chapters
      ·         The Contract Modification section from the product chapters has been removed as this language was previously relocated to CME Rule 419 (“Contract Modification”)
      ·         Defined terms have been capitalized (e.g., Business Day, Trading Day, etc.)
      To view the changes to the product chapters in their entirety, please click on the following link:
      If you have any questions concerning this matter, please contact Erin Schwartz, Sr. Rules & Regulatory Outreach Specialist, Market Regulation Department, at 312.341.3083, or via email at Erin.Schwartz@cmegroup.com.
      For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312.930.3434 or news@cmegroup.com.