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CME Globex Credit Controls (GC2) is a front-end application that provides pre-execution risk controls that enable Clearing Firm or partner exchange Clearing firm risk administrators to set credit limits. The Clearing firm or partner exchange Clearing firm risk administrators can choose a set of real-time actions to follow if specified limits are breached, including e-mail notifications, order blocking, and order cancellation.

GC2 Features include:

  • Exposure Limits - set exposure Limits for Futures and Options.
  • Open and Filled Position Calculations - open and filled positions are calculated for a product complex per Executing Firm ID / Exchange group.
  • Good Till Cancel and Good Till Day Orders - Good Till Cancel (GTC) and Good Till Day (GTD) orders are included in the position calculation for the given Executing Firm ID / Exchange group at the beginning of the trading week.
  • Advanced Settings - used to set a reference margin rate.
  • Max Quantity Limits - in addition to Exposure Limits, the risk administrator can enter the optional Max Quantity Limit Clip Size for Buy/Sell Futures and/or Buy/Sell Options for the grouping.

When Orders and Cancel/Replace messages submitted with a quantity greater than the current clip size, GC2 will send out Session Level Reject (35=3) with the following description in tag 58: Credit Limit Violation: Order Quantity x exceeds Clip Size: y.

For Mass Quotes, GC2 only applies post-execution.

GC2 Calculations Video Overview

The following video provides an overview of how GC2 calculations work:

For complete details regarding the GC2 GUI, please refer to the Risk Management Tools Help System.

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