CME Globex Notice: July 2, 2018

Critical System Updates

Price Precision Extension - 2018

CME Group is implementing end-to-end technology changes to support increased price granularity. Currently, CME Group systems support a maximum of 7 decimals. With this initiative, products with up to 9 decimals may be listed and traded. On Sunday, January 13, 2019 (trade date Monday, January 14), pending regulatory approval, the 2-Year Treasury Note futures, all 2-Year Treasury Future Spreads (including Calendar Spreads, Tail Spreads and Inter-Commodity Spreads with a 2-Year Treasury Future) along with the futures portion of covered options UDS, will move from 7 decimals to 8 to support trading at 1/8 of 1/32.

Customers are encouraged to move to support 9 decimals now; but there are no plans to list a product that uses the 9th decimal at this time.

With this release, customer certification will be required for MDP 3.0 and Streamlined SBE.  The new Market Data templates are currently available in New Release and the AutoCert+ test suite is now available for certification.

Starting Sunday, August 12, the price precision extension rollout will begin with MDP 3.0 in production over several weekends.

On Sunday, November 4, a production test instrument for the 2-Year Treasury Note futures will be launched on CME Globex. This new test instrument will give customers the ability to confirm system readiness for the introduction of 8-digit decimal price precision. Upon the launch of this test instrument, clients whose systems are not yet prepared to handle 8 decimal precision must ensure their systems have the ability to ignore market data and iLink/Drop Copy execution reports on this new instrument.

Price Precision Timeline:

 

 

Customer Mock Trading Sessions

To ensure customers can process the market data, CME Group will offer three customer mock trading sessions prior to each schema rollout group and Globex test instrument launch:

• Saturday, July 28
• Saturday, August 25
• Saturday, October 20

Customers are required to register and join the conference bridge line to participate in the mock trading sessions.

For complete impacts, rollout information and dates, please refer to Key Events and Dates in the Client Impact Assessment.

The Client Impact Assessment includes additional information on the following:

• CME Globex iLink
• CME Globex MDP3 and Mandatory Certification
• Streamlined MDP and Mandatory Certification
• ITC
• CME Globex Drop Copy
• Referential Data
• Production Globex Test Instrument

Please watch the Price Precision Extension Technology Webinar for a technical impact overview.

These changes are currently available in New Release for customer testing. The 2-Year Treasury Note futures are available in New Release with 1/8 of 1/32 tick.

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New Functionality

Globex MDP3 SBE Schema Update - August 12

Starting Sunday, August 12, in conjunction with the price precision initiative, CME Group will update the schema for all Globex MDP3 SBE market data channels.  Please view the rollout schedule.   This release will not support template extension, however the order of the fields will be preserved in the new templates.  Please review an overview of changes. 

The new version 9 schema is currently available New Release for customer testing. 

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Streamlined MDP SBE Schema Update - August 26

Starting Sunday, August 26, in conjunction with the price precision initiative, CME Group will update the schema for streamlined SBE market data channels to support schema version 9 to ensure consistency between market data channels.  Please view the rollout schedule.  This release will not support template extension; however, the order of the fields will be preserved in the new templates. Please review an overview of changes. 

The new version 9 schema is currently available is currently available in New Release for customer testing New Release public FTP. 

Please Note: The schema update timeline for Streamlined Equity Indices and CME CF Cryptocurrency Pricing channels will be announced at a later date.

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Product Launches

Gold TAS and Silver TAS Spreads - July 15

Effective Sunday, July 15 (trade date Monday, July 16), the CME Group will add Gold TAS and Silver TAS spreads for the first 2 TAS months on CME Globex.

Gold TAS and Silver TAS
Product	MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group	Tag 762- SecuritySubType
Gold TAS	GCT	TG	EC – TAS Calendar Spreads
Silver TAS	SIT	MT	EC – TAS Calendar Spreads

The spreads are currently available for customer testing in New Release.

These contracts are listed with, and subject to, the rules and regulations of COMEX.

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Options on Black Sea Wheat and Black Sea Corn  - July 15

Effective Sunday, July 15 (trade date Monday, July 16), the following Agricultural options will be listed for trading on CME Globex and for submission for clearing via CME ClearPort.

Options on Black Sea Wheat and Black Sea Corn
Product	MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group	Market Data Channel
Options on Black Sea Wheat Financially Settled (Platts) Futures	BWO	W2	341
Options on Black Sea Corn Financially Settled (Platts) Futures	BSO	CG	341

These products will be available for customer testing in New Release on Monday, July 9.

These contracts are listed with, and subject to, the rules and regulations of CBOT.

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California Low Carbon Fuel Standard (PRIMA) Futures  - July 15

Effective Sunday, July 15 (trade date Monday, July 16), California Low Carbon Fuel Standard (PRIMA) futures will be listed for trading on CME Globex and for submission for clearing via CME ClearPort. With this launch, a new unit of measure (tag 996-UnitOfMeasure=ENVCRD) Environmental Credit will be introduced.  The unit of measure can be found in the MDP 3.0 Security Definition message.

California Low Carbon Fuel Standard (PRIMA) Futures
Product	MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group	Market Data Channel	tag 996-UnitOfMeasure
California Low Carbon Fuel Standard (PRIMA) Futures	LCF	VX	380	ENVCRD

These futures are currently available for customer testing in New Release.

These contracts are listed with, and subject to, the rules and regulations of NYMEX.

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New New - Asia LPG and Naphtha Spread Futures  - July 29

Effective Sunday, July 29 (trade date Monday, July 30), the Asia LPG and Naphtha spread futures will be listed for trading on CME Globex and for submission for clearing via CME ClearPort.

Asia LPG and Naphtha Spread Futures
Product	MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group	Market Data Channel
Argus Propane Far East Index vs. Japan C&F Naphtha (Platts) Futures	3NA	ZZ	386
Argus Propane Far East Index vs. Japan C&F Naphtha (Platts) BALMO Futures	3NB	ZZ	386

These futures will be available for customer testing in New Release on Monday, July 16.

These contracts are listed with, and subject to, the rules and regulations of NYMEX.

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New New - Propane OPIS vs Argus Spread Futures  - July 29

Effective Sunday, July 29 (trade date Monday, July 30), the Propane OPIS vs Argus Spread futures will be listed for trading on CME Globex and for submission for clearing via CME ClearPort.

Propane OPIS vs Argus Spread Futures
Product	MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group	Market Data Channel
Mont Belvieu LDH Propane (OPIS) vs. Argus Propane Far East Index Futures	PMF	JR	386
Mont Belvieu Non-LDH Propane (OPIS) vs. Argus Propane Far East Index Futures	PNF	JR	386

These futures will be available for customer testing in New Release on Monday, July 16.

These contracts are listed with, and subject to, the rules and regulations of NYMEX.

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Eris Swap Futures on Globex - 4Q 2018

In Q4 2018, pending regulatory approval, CME Group will list Eris Swap Futures on the CBOT designated contract market (DCM) for trading on CME Globex. Eris swap futures Block Trade transactions can also be submitted via CME Direct or CME ClearPort.

The Eris Swap futures will function similarly and trade alongside the MAC Swap Futures, bringing together the two leading interest rate swap futures on a single exchange venue.

Eris  Swap futures will be listed for quarterly IMM starting contracts, with fixed MAC coupons, and underlying tenors of 2, 3, 4, 5, 7, 10, 12, 15, 20, and 30-years.

The Client Impact Assessment includes information on the following:

• Order Entry Considerations
  • Pricing conventions
  • Trading Eligibility
• Market Data Considerations
  • Market Data Channels
  • Product Specifications
    • Eris Swap Futures Security Type
    • Eris Swap Futures Product Code
    • Standard Calendar Spreads (SP)
    • Changing Minimum Price Increment
    • Contract Month Convention
  • Eris Swap Futures Market Data through CME DataMine.
  • Risk Management Services

These futures will be made available in New Release for customer testing on a date to be announced in a future Globex notice.

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Product Changes

New New - Delisting and Removal of EU Wheat Futures and Option  - This Week

On Monday, July 2 EU Wheat futures and options were delisted and on Friday, July 6 these futures and options will be removed from CME Globex at close of business.

Delisting and Removal of EU Wheat Futures and Options
Product	MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group
EU Wheat Futures	WEU	M3
EU Wheat Options	WEO	MU

These futures and options currently have no open interest.

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Change to Maximum Order Quantity for Various Agricultural Options - July 15

Effective Sunday, July 15 (for trade date Monday, July 16), the maximum order quantity will be increased for the following Agricultural options:

Change to Maximum Order Quantity for Various Agricultural Options
Product	MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group	Current tag 1140-MaxTradeVol	New tag 1140-MaxTradeVol
Corn Options	OZC	OC	1,000	3,000
Corn Weekly Options	ZC1-ZC5	OC	1000	3,000
Soybean Options	OZS	SQ	1,000	3,000
Soybean Weekly Options	ZS1-ZS5	SQ	1,000	3,000
Soybean Meal Options	OZM	ML	1,000	3,000
Soybean Meal Weekly Options	ZM1-ZM5	ML	1,000	3,000
Soybean Oil Options	OZL	0O	1,000	3,000
Soybean Oil Weekly Options	ZL1-ZL5	0O	1,000	3,000
Chicago SRW Wheat Options	OZW	OW	1,000	3,000
Chicago SRW Wheat Weekly Options	ZW1-ZW5	OW	1,000	3,000
KC HRW Wheat Options	OKE	OK	1,000	3,000
KC HRW Wheat Weekly Options	OE1-OE5	OK	1,000	3,000
Feeder Cattle Options	GF	F0	500	1,000
Lean Hog Options	HE	0H	500	1,000
Live Cattle Options	LE	L0	500	1,000
Cash-settled Butter Options	CB	C0	100	250
Cash-settled Cheese Options	CSC	CQ	100	250
Dry Whey Options	DY	Y0	100	250
Non-fat Dry Milk Options	GNF	N7	100	250

These changes are currently available for customer testing in New Release.

These contracts are listed with, and subject to, the rules and regulations of CME and CBOT.

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Changes to Circuit Breakers for Brent Last Day Financial Futures - July 15

Effective Sunday, July 15 (trade date Monday, July 16), circuit breakers values will be modified for Brent Last Day Financial futures.

Changes to Circuit Breakers for Brent Last Day Financial Futures
Product	iLink: tag 1151-Security Group MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group	Current Circuit Breaker Settings		New Circuit Breaker Settings
Brent Last Day Financial Futures	BZ	OP	Level 1:	500	Level 1:	700
			Level 2:	1000	Level 2:	1400
			Level 3:	1500	Level 3:	2100
			Level 4:	2000	Level 4:	2800
			Level 5:	No Limit	Level 5:	No Limit

This change is currently available for customer testing in New Release.

This product is listed with, and subject to, the rules and regulations of NYMEX.

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Change to Maximum Order Quantity and TOP Order Allocation Maximum for Corn and Soybean Futures  - Starting July 29

Starting Sunday, July 29 (for trade date Monday, July 30), through Friday, November 30, based on market participant feedback, CME Group will introduce a pilot program to amend the maximum order quantity and the TOP order allocation maximum for calendar spreads on Corn and Soybean futures.  During the pilot program, these calendar spread markets will be monitored and evaluated to determine if the changes will remain in place or will be adjusted. The program is subject to early termination at the discretion of the Exchange and any changes to the program will be communicated via the Globex notice.

Changeto Maximum Order Quantity and TOP Order Allocation Maximum for Corn Futures and Soybean Futures
Product	MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group	Current Maximum Order Quantity	New Maximum Order Quantity	Current TOP Order Allocation Maximum	New TOP Order Allocation Maximum
Corn Futures	ZC	ZC	2500	10000	100	1000
Soybean Futures	ZS	ZS	2500	10000	100	1000

The pilot will be available for customer testing in New Release on Monday, July 16.

These contracts are listed with, and subject to, the rules and regulations of CBOT.

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New New - Changes to CME FX Futures and Options Circuit Breaker Rules  - July 29

Effective Sunday, July 29 (for trade date Monday, July 30), pending all relevant CFTC regulatory review periods, the circuit breaker rules for CME FX futures and options will be changed as follows:

• there shall be no price limits in the expiring primary FX futures contract only; and
• any non-expiring contract months of the primary FX futures contract or any contract months of any associated products of the primary FX futures contract shall have price fluctuation limits

For additional information, please refer to Special Executive Report S-8168.

The circuit breaker settings for all CME Globex products are defined in the CME Globex Product Reference.

These futures will be available for customer testing in New Release on Monday, July 16.

These contracts are listed with, and subject to, the rules and regulations of CME.

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New New - Change to Minimum Price Increment for U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Futures: Resting Order Eliminations - July 29

Effective Sunday, July 29 (trade date Monday, July 30), the minimum price increment tag 969-MinPriceIncrement will be changed for the following.

U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Futures
Product	MDP 3.0: tag 6937-Asset	iLink: tag 55-Symbol MDP 3.0 tag 1151 - Security Group	Current tag 969 - MinPriceIncrement	New tag 969 - MinPriceIncrement
To facilitate the change, customers are asked to cancel all Good ‘Till Cancel (GTC) and Good ‘Till Date (GTD) orders after the close on July 27. After 16:00 CT on July 27 all remaining GT orders for this future will be cancelled or deleted by the CME Global Command Center (GCC).
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Futures	BUS	ST	1	100

This change will be available for customer testing in New Release on Monday, July 16.

These contracts are listed with, and subject to, the rules and regulations of NYMEX.

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Events and Announcements

10Gbps Offering  - October 1

To allow for greater than 1Gbps connectivity for market data distribution, CME Group now offers a 10Gbps fiber interface for CME LNet, EConnect, EConnect Secaucus and Globex Hub customers.  Interested customers can now order the 10Gbps fiber interface from CME Group.  By Monday, October 1, CME Group expects the bandwidth for the full market data feed to exceed 1Gbps and will modify traffic shaping to 2Gbps. For those customers that order the 10Gbps fiber interface, 1Gbps pricing will be in effect until Monday, October 1 when customers will be charged for 10Gbps as reflected in the chart below.

Offering	1Gbps Monthly  Customer Fee	10Gbps Monthly Customer Fee
CME LNet	$8,000	$12,000
CME EConnect	$4,000	$6,000
CME EConnect Secaucus	$4,000	$6,000
CME Globex Hubs	$1,000	$2,000

All CME LNet, EConnect, EConnect Secaucus and Globex Hub customers should review their existing market data subscriptions and determine which option they will use based on their bandwidth needs. 
Options to consider:

• Limit market data subscriptions to 1Gbps of bandwidth
• Choose to have multiple 1Gbps connections (additional monthly fee)
• Upgrade to a 10Gbps interface (new monthly fee)   
• License space in CME Group Colocation Facility          

Key Dates:

• June 1, 2018 –  CME Group began accepting 10Gbps fiber interface orders for CME LNet, EConnect, EConnect Secaucus and Globex Hubs
• October 1, 2018 – CME Group will modify traffic shaping to 2Gbps and the regular fees for the 10Gbps interface offering will go into effect

Additional Resources:

• Bandwidth statistics, by channel: www.cmegroup.com/bandwidthstats

For more information on the 10Gbps offering, please contact your Global Account Manager.

Global Account Management
U.S.: +1 312 634 8700 gam@cmegroup.com
Europe: +44 20 3379 3754 gamemea@cmegroup.com
Asia: +65 6593 5505 gamasia@cmegroup.com

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