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Better Price Match (BPM) is a certain percentage of the quantity on the Request for Cross (RFC) that will cross at the RFC price.

CME Globex applies BPM logic during RFC allocation. If the RFC price betters the order book bid and ask prices and the order book bid or ask prices do not improve the RFC price at the conclusion of the Pre-Cross state, then CME Globex applies a BPM percentage to the Cross order. All subsequent Cross match rules thereafter apply.

The following examples show cases in which the BPM would and would not apply according to the rules stated above.

Example 1

  1. Market is 4 – 6.
  2. RFC entered for price of 5 for a quantity of 5000.
  3. At end of Pre-Cross state, the market is 5 – 6.
  4. The BPM is applied because:
    • the Cross price betters the order book bid and ask prices upon receipt by CME Globex and
    • the order book bid or ask prices are not through the Cross price at the conclusion of the Pre-Cross state.
  5. If any order quantity remains after the BPM, CME Globex matches the market's 5 bid against the Cross offer.
  6. CME Globex applies the Broker Match Guarantee (BMG) percentage if there is remaining Cross quantity on both sides.

Example 2

  1. Market is 5 – 6.
  2. RFC entered for price of 5 for a quantity of 5000.
  3. Since the Cross bid does not have a better price than the market's bid at the time of receipt by CME Globex, the BPM is not applied.
  4. At end of Pre-Cross state, the market is 5 – 6.
  5. CME Globex matches the market's 5 bid against the Cross offer.
  6. CME Globex applies the BMG if there is remaining Cross quantity on both sides.

Example 3

  1. Market is 4 – 6.
  2. RFC entered for price of 5 for a quantity of 5000.
  3. At end of Pre-Cross state, the market is 3 – 4.
  4. The RFC 5 offer is better than the market price at the time of receipt by CME Globex, but at the conclusion of the Pre-Cross state the order book offer is better than the Cross bid. Therefore, the BPM is not applied.
  5. The market's 4 offer is matched against the Cross bid and the Cross bid receives the price improvement.
  6. CME Globex applies the BMG if there is remaining Cross quantity on both sides.

Example 4

  1. Market is 5 – 6.
  2. RFC entered for price of 5 for a quantity of 5000.
  3. At end of Pre-Cross state, the market is 4 – 6.
  4. Since the Cross order does not have a better price than the market upon receipt by CME Globex, the BPM is not applied.
  5. CME Globex applies the BMG.

Example 5

  1. Market is 4 – 6.
  2. RFC entered for price of 5 for a quantity of 5000.
  3. At end of Pre-Cross state, the market is 4 – 6.
  4. Since the RFC price betters the order book bid and ask prices upon receipt and the order book bid or ask prices do not improve the RFC price at the conclusion of the Pre-Cross state, the BPM is applied first.
  5. CME Globex applies the BMG.

Example 6

  1. Market is no bid - no offer.
  2. RFC entered for price of 5 for a quantity of 5000.
  3. At end of Pre-Cross state, the market is no bid - no offer.
  4. Since the Cross has a better price (and only price) than the order book prices, and the order book bid or ask prices do not improve the RFC price, the BPM is applied at the conclusion of the Pre-Cross state.
  5. CME Globex applies the BMG.
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