Clearing House Advisory Notice
To | Back Office Managers, Delivery Personnel
From | Clearing House Department
Subject | Important Currency Delivery Reminders
Effective Date | 03/03/03
Notice Number | 03-19
The March 2003 currency delivery will occur the week of March 17, 2003. Following are several reminders regarding the currency deliveries. Also attached are the delivery instructions for each contract. ORDERS-TO-PAY All Orders-To-Pay are to be sent to the US based agent for the contract. This information is available on the attached currency delivery instructions. BANK OF AMERICA, CONCORD Please have your payment bank issue SWIFT messages for US Dollar payments for Bank of America, Concord to the BOFAUS6SCME address. 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 settlement date. This may delay the corresponding US Dollar payment to your firm. 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. 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. 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. CURRENCY CROSS-RATES There is usually a dual order-to-pay requirement for firms involved in delivery of currency cross-rate products. Special rules apply to determine if order-to-pay issuance is necessary for firms netting payment obligations arising from cross-rate products. 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. CURRENCY TIMELINE Following is the timeline for the March 2003 currency delivery: Thursday, March 13, 2003 � Potential delivery positions are submitted to the Clearing 21 Currency Delivery System by 4:00 PM Chicago Time. Monday, March 17, 2003 � Commitments are due for all contracts except Canadian Dollar by 11:00 AM Chicago Time. Tuesday, March 18, 2003 � 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, March 19, 2003 � 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. The following table converts Chicago time to the applicable foreign country. Deliveries Staff will be in contact with the agent banks during 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 delivery.
Currency | Agent Bank/Location | Agent Bank Time | Chicago Time
N. Z. Dollar | Citibank, Auckland | 10:00 AM | 4:00 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
Euro Currency | Citibank, Frankfurt | 10:00 AM | 3:00 AM
Swiss Franc | B of A, Geneva | 10:00 AM | 3:00 AM
British Pound | Chase, London | 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, March 18, 2003 Following is a link to the delivery instructions for CME currency deliveries. Payment Instructions for Currency Deliveries (PDF) If there are any questions, please contact the Clearing House Operations Unit at (312) 930-3172.