Audit Advisory Notice
 | 
From Audit Department
Subject Financial Reporting Rule Amendments
Effective Date 11/20/01
Notice Number 01-05

Recently, several amendments were made to the financial reporting and notification requirements of clearing members. In brief, these rule amendments were adopted to provide:

  1. Timely notification of changes in fiscal years and public accountants for all CME clearing members, and

  2. Efficient and effective approval of requests for financial statement filing extensions and changes in public accountants for clearing members for which CME is the designated self-regulatory organization ("DSRO").

Please note the following significant changes.

Rule 970.A.

The notification requirements of CME Rule 970.A. were expanded to include a change in a firm�s fiscal year as well as a change in a firm�s public accountant for all CME clearing members.

Rule 970.C.

Rule 970.C. has been amended to allow firms for which CME is the DSRO to request and receive approval from the Audit Department for financial statement filing extensions and for changes in fiscal years. Previously, such requests were made to and granted by the CFTC. The amendments were made with the endorsement of the CFTC in recognition of our knowledge and working relationships with our DSRO clearing members.

In addition, the monthly financial statement filing requirements contained in Rules 970.C.1 and 2. were combined for simplicity.

In the attached formal rule changes, additions are underlined and deletions are lined-out and bracketed. If you have any questions, please call the Audit Department at (312) 930-3230 or e-mail us at audits@cme.com.