Clearing House Advisory Notice
To | Back Office Managers
From | Clearing House Department
Subject | Important Currency Delivery Reminders
Effective Date | 12/13/01
Notice Number | 01-90
The December Currency Delivery will occur the week of December 17, 2001. Following are several reminders regarding the Currency Deliveries. Monday, December 17, 2001 � Commitments are due for the for all contracts except Canadian Dollar by 11:00 AM. Tuesday, December 18, 2001 � Commitments are due for the Canadian Dollar by 11:00 AM. Orders-to-pay are due to the agent banks by 1:00 PM. For questions regarding Orders-to-pay please contact the Financial Unit at 207-2594. Wednesday, December 19, 2001 � Payments of U.S. Dollar and the Foreign Currencies are due to the corresponding agent banks by 10:00 AM local time to the specific agent bank. Following is a table showing what time it is in Chicago when it is 10:00 AM in the foreign country. Deliveries Staff will be in contact with the agent banks during monitoring the delivery process throughout Tuesday night and Wednesday. It is important to have an individual aware of and in a position to answer any questions at any time during this time.
Commodity | Agent Bank/Location | Agent Bank Time | Chicago Time
N. Z. Dollar | Citibank, Auckland | 10:00 AM | 3:00 PM *
Australian Dollar | B of A, Sydney | 10:00 AM | 5:00 PM *
Japanese Yen | DKB, Tokyo | 10:00 AM | 7:00 PM *
S. A. Rand | Citibank, Johannesburg | 10:00 AM | 2:00 AM
Swiss Franc | B of A, Geneva | 10:00 AM | 3:00 AM
French Franc | B of A, Paris | 10:00 AM | 3:00 AM
British Pound | Chase, London | 10:00 AM | 4:00 AM
Deutsche Mark | Citibank, Dublin | 10:00 AM | 4:00 AM
Euro Currency | Citibank, Dublin | 10:00 AM | 4:00 AM
Canadian Dollar | B of A, Toronto | 10:00 AM | 9:00 AM
US Dollar | Citibank, Buffalo | 10:00 AM | 9:00 AM
US Dollar | Bank One, New York | 10:00 AM | 9:00 AM
US Dollar | Chase, New York | 10:00 AM | 9:00 AM
Mexican Peso | B of A, Mexico City | 10:00 AM | 10:00 AM
US Dollar | B of A, Concord | 10:00 AM | 12:00 PM
* - Denotes Chicago date of Tuesday, December 18, 2001 In addition, there are special concerns regarding four contracts in the currency delivery: MEXICAN PESO Funding for Mexican Peso must be in place prior to the delivery. Peso payments are to be made via the Mexican Interbank payment system �SPEUA� (�Spay-wah�). In addition to understanding any special account or funding requirements that approved Mexican delivery banks may have, it is important to have a specific individual aware of and in a position to answer any questions regarding peso payments on the delivery day. Also, effective December 1, 2001, Citibank Mexico has merged with Banco Nacional De Mexico and changed their SWIFT BIC address from CITIMXMM to BNMXMXMM. If you utilize Citibank Mexico for the Mexican Peso delivery, please plan accordingly. # SOUTH AFRICAN RAND There is a dual order-to-pay requirement for the South African Rand. Clearing firms who will be delivering the South African Rand must submit an order-to-pay for the value of the Rand delivery by 1:00 PM (Central Time) on the day preceding the delivery day. The appropriate agent bank must receive the payment for the order-to-pay no later than 10:00 AM local time on the delivery day. NEW ZEALAND DOLLAR New Zealand dollar payments must be made via the New Zealand Real Time Gross Settlement System (RTGS). Citibank cannot confirm receipt of payment sent via any other payment system until the next business day after the Wednesday settlement date. All clearing firms need to understand any special account or funding requirements that approved New Zealand delivery banks may have. It is also important that each firm determines which specific individuals at the New Zealand delivery bank will be aware of the New Zealand dollar payments. CURRENCY CROSS-RATES There is usually a dual order-to-pay requirement for firms involved in currency cross-rates. Special rules apply to determine if order-to-pay issuance is necessary for firms netting payment obligations arising from cross-rate products. Basically, if the netted foreign cash payment obligation is associated with a cross-rate product on a prenetted basis, an order-to-pay must be issued. The same reasoning is used in determining orders-to-pay for netted dollar payment obligations. If there are any questions, please contact. the Deliveries Unit at (312) 930-3172.