iLink 3 Trading on Behalf of a Client

CME Globex allows firms to submit orders on behalf of clients or other clearing member firms for whom the submitting firm is authorized to transact. 

Firm ID and Order Submission

CME Group-assigned session identifiers (tag 39006-Session in the Negotiate and Establish messages) and Firm IDs (tag 39007-Firm in the Negotiate and Establish messages) must be used when clearing member firms submit orders on behalf of clients. The Executing Firm is:

• submitted in tag 1691-PartyDetailID when tag 1693-PartyDetailRole=1 (Executing Firm) in the iLink 3 Party Details Definition Request, and
• returned in tag 1691-PartyDetailID when tag 1693-PartyDetailRole=1 (Executing Firm) in the iLink 3 Party Details Definition Request Acknowledgment.

A client system can negotiate and establish a session with one Firm ID and populate tag 1691-PartyDetailD with a different Firm ID to submit the order. This is only allowed if both firms are associated with the same session.

Firm Trading for Itself

A firm submitting an order for itself must populate tag 1691-PartyDetailID with the value assigned by CME Group to the firm as an identifier of its own business.

Firm Trading on Behalf of a Clearing Member Firm

For an authorized firm to submit an order for a clearing member firm (Affiliate, Sub-Accounting, or Cross-Margin firm number), the submitting firm must populate tag 1691-PartyDetailID with the value assigned by CME Group to the clearing member firm on whose behalf the order is submitted.

Firm Trading for a Non-Clearing Member Firm

For the firm to submit an order for a client that is not a clearing member, the submitting firm can populate tag 582-CustOrderCapacity and tag 1816-ClearingAccountType as described in the iLink 3 Party Details Definition Request message layout.

Example

The following example demonstrates how firm 999 can submit orders for:

• itself (firm 999)
• another clearing member firm (e.g. firm 998)
• for a non-clearing member firm client