Clearing Systems and Operations

CME Clearing is a fast, highly complex and high volume business that uses sophisticated systems and operations.

Front End Clearing Systems

The Front-End Clearing System (FEC) is a web-based application that provides clearing member firm back office staff with an integrated method for entering and processing a variety of trade types.

Average Pricing Calculations

The Average-Pricing feature of Front-End Clearing allows a group of transactions at various prices, to be replaced by a smaller set of transactions at an average price. The system supports both a true average price, and a rounded average price. Here are the exact calculation details, expressed both in English and algebraically, and here are some examples.

TAS, TAM and BTIC trades

This document summarizes the special trade messaging for Trade at Settlement (TAS), Trade at Marker (TAM), and Basis Trade Index Close (BTIC) transactions. These three types are all analogous in that the trade is executed at a differential from a not-yet-known price. For TAS, that not-yet-known price is the contract's end of day settlement price. For TAM, it's some other value - a "marker" price. A BTIC is just a special name for TAM transactions in equity index futures where the marker price is the closing value of the underlying equity index.

Give-up Payment Systems

The Give-Up Payment System (GPS) offers real-time fee calculation, automatic payment processing for member firm give-up execution business and online viewing of transactions.

Broker Payment Systems

BPS facilitates brokerage payments to filling brokers by member firms via automatic debits to member firms' bank accounts. All members and member firms are required to use BPS for broker billing and payment.

Money Calculations for Futures and Options

This document provides exact descriptions and examples of how to calculate settlement variation amounts for futures and premium amounts for options, including the “futures inverse” method. It also provides details on calculation of “daily adjustment amounts” for certain futures.

Clearing System User Guides Directory

Find systems manuals, technical standards and guidelines, training, forms and other resources in this directory.

Forwards Processing

This document provides exact details of money calculations and clearing processing for forwards, including cash-settled and non-deliverable OTC FX forwards, physically-deliverable forwards on metals, and forwards on deliverable natural gas.