CME Globex Self- Match Prevention Functionality - Frequently Asked Questions

• What is CME Globex Self-Match Prevention functionality?
• How does the SMP functionality work?
• At what firm level will the SMP ID operate?
• What are the new iLink tags that will be used for the submission of the SMP ID?
• What is the iLink tag that must be used in order for a party to choose whether to cancel the resting order or the aggressing order?
• If SMP functionality is employed, will it add latency relative to orders that do not utilize SMP functionality?
• Will SMP functionality prevent self-matching of buy and sell orders entered through different Sessions?
• How does SMP functionality operate with respect to products that employ implied spreading functionality?
• How do I register for a SMP ID, and what information is required to register?
• Is there a fee for the use of SMP functionality?
• Are there any restrictions on the use of SMP functionality?
• Is the use of SMP required by CME Group Exchanges?
• Will the usage of SMP be monitored?

What is CME Globex Self-Match Prevention functionality?

CME Globex Self-Match Prevention (SMP) is optional functionality that allows market participants to prevent the matching of orders for accounts with common ownership, within and across different Globex Firm IDs and within and across clearing firms.

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How does the SMP functionality work?

For non-FIFO markets, orders will be cancelled when an allocation could occur.

Customers who opt to leverage Self-Match Prevention functionality by registering via the Firm Admin Dashboard will submit tag 7928-SelfMatchPreventionID on each quote and order message to prevent trading against an opposite side order with the same SMP ID.

When CME Globex detects a Buy order and a Sell order with the same SMP ID at the same executable price level, it automatically cancels the resting or incoming (aggressing) order(s) based on the Self-Match Prevention Instruction. If the Self-Match Prevention Instruction is not submitted, CME Globex will cancel the resting order(s) by default and continue processing the incoming order. 

The unsolicited cancel due to Self-Match Prevention is included in the CME Globex Messaging Efficiency Program with a pre-defined weighting factor = 3.

New or modified SMP IDs will be activated at 16:30 CT Monday-Thursday and 09:30 CT Sunday. During these times, CME Globex will eliminate any resting orders with unregistered SMP IDs. Orders submitted with new or modified SMP IDs before activation will be rejected.

For more details on the SMP functionality, please refer to the Client Systems Wiki.

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At what firm level will the SMP ID operate?

Authorized Firm Administrator Dashboard users can request new or extend existing SMP IDs across multiple CME Globex Firm ID(s) within or across clearing firms.  A Globex Firm is identified in the three-character alpha-numeric value transmitted in positions 4 through 6 of iLink tag 49 -SenderCompID on the message to CME Globex, and in iLink tag 56 - TargetCompID on the message from CME Globex.

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What are the new iLink tags that will be used for the submission of the SMP ID?

The new FIX tag for the SMP ID is Tag 7928 – SelfMatchPrevention ID.

For more details on the SMP functionality, please refer to the Client Systems Wiki.

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What is the iLink tag that must be used in order for a party to choose whether to cancel the resting order or the aggressing order?

The FIX tag for the SMP instructions is Tag 8000-SelfMatchPreventionInstruction.

For more details on the SMP instruction, please refer to the Client Systems Wiki.

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If SMP functionality is employed, will it add latency relative to orders that do not utilize SMP functionality?

No. All orders submitted to Globex, irrespective of whether they contain a SMP ID, are subject to the same SMP ID check at the trading engine. Therefore, whether a participant employs the functionality has no impact on latency.

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Will SMP functionality prevent self-matching of buy and sell orders entered through different Sessions?

Yes, the order that will be cancelled will be the resting order unless instructions to the contrary are contained in Fix Tag 8000 regardless of whether the orders were entered through different Sessions.

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How does SMP functionality operate with respect to products that employ implied spreading functionality?

SMP functionality does not prevent self-matches where the trade would involve an implied order. The SMP functionality will prevent opposing spread orders at the same executable price level from matching. For example, if a March-June spread order to buy the spread at 10 is resting and an order with the same SMP ID is entered to sell the same spread at 10, then the resting buy order would be entirely cancelled, preventing the self-match. However, if the order to buy the March-June spread creates an implied bid or offer and an outright order with the same SMP ID is entered on the opposite side of the market and at the same executable price level as the implied bid or offer, the SMP functionality will not prevent the trade, and the party’s outright order could match against a leg of the party’s spread order.

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How do I register for a SMP ID, and what information is required to register?

New Release and Certification Testing

Customer registration is required for testing in the New Release and Certification environments. Contact your Global Account Manager to obtain registered New Release SMP IDs. New SMP IDs and updates are valid same-day after 8 pm CT.

Production

Customer registration is required for Production use. Registered Firm Administrator Dashboard users may register their Globex Firm IDs and SMP IDs via the Firm Administrator Dashboard (FADB). Market participants who are not registered Firm Administrator Dashboard users should contact their clearing firm for any SMP ID related requests. New SMP IDs and updates are valid same-day after 4:30 pm CT Monday-Thursday and 9:30 am CT Sunday

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Is there a fee for the use of SMP functionality?

At this time, CME is not charging a fee for the use of SMP functionality.

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Are there any restrictions on the use of SMP functionality?

Yes. SMP IDs may be used to prevent the matching of orders only if the buy and sell orders are for the same account or for accounts that have common ownership.

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Is the use of SMP required by CME Group Exchanges?

No, the use of SMP functionality is optional. Each firm can tailor its use of SMP in ways that are appropriate for its business provided that the firm adheres to all SMP requirements and relevant exchange rules. Although use of SMP functionality is optional, market participants are reminded that the rules of all CME Group exchanges prohibit illegal wash trades, and firms should carefully review the CME Group Market Regulation Advisory for additional guidance regarding prohibited wash trades.

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Will the usage of SMP be monitored?

Yes, the CME Group Market Regulation Department will monitor the use of SMP functionality for proper registration and proper usage. Market participants are reminded that the use of SMP functionality for any non-bona fide purpose may constitute a violation of CME Group exchanges’ rules.

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Should you have any questions on the registration or operation of SMP functionality, please contact CME Global Account Management. Regulatory questions should be directed to the CME Group Market Regulation Department at (312) 341-7970.