Clearing House Advisory Notice
To | Chief Financial Officers Back Office Managers
From | CME Clearing House
Subject | Expansion of Interest Earning Facility Investment Managers
Effective Date | 09/27/00
Notice Number | 00-70
The CME Clearing House is pleased to announce the addition of Harris Investment Management as an investment manager for the Interest Earning Facility (�IEFԔ) program. Starting Thursday, September 28, 2000, clearing firms participating in the IEF program will be able to choose to have funds committed to the IEF program managed by either Brown Brothers Harriman & Co, Harris Investment Management, or both. Firms participating in the IEF program have enjoyed the excellent investment management services of Brown Brothers Harriman & Co for over three years. The CME carefully evaluated the IEF program in making the decision to extend an IEF investment management relationship to Harris Investment Management. The CME believes that it is adding value and flexibility to the IEF program by allowing IEF participants the ability to allocate funds to either or both investment managers. Clearing 21 has been enhanced to support this important new functionality. Clearing 21 procedures have been updated to allow firms to specify the investment manager as appropriate when entering IEF deposit or withdrawal transactions, or when updating IEF settlement elections. The CME will place two basic restrictions on the use of IEF units in a multiple investment manager environment. Both of these restrictions have to do with utilization of IEF units to meet settlement obligations. First, IEF units allocated to only one investment manager may be used to meet a firm�s settlement obligations at any given regularly scheduled settlement cycle. Second, while firms participating in the IEF program who desire to use IEF units to meet settlement obligations will be able to change elections between investment managers, excessive changes between investment managers will not be permitted. Clearing House Advisory Notice 00-70 September 27, 2000 Effective immediately, existing deadlines for the deposit or withdrawal of IEF units have been changed to 11:00 a.m. from 10:30 a.m. Deadlines for firms to update IEF settlement elections remain unchanged at 11:00 a.m. for the regularly scheduled intra-day settlement cycle, and 3:30 p.m. for the end-of-day settlement cycle. Firms with questions about any of the above, as well as firms who have not previously participated in the IEF program and who would like to obtain general information about the program, should direct their inquiries to Dora De La Paz, Financial Project Manager, at 312-930-3171 or to Tim Golomb, Associate Director, Financial Management, at 312-930-3194.