Clearing House Advisory Notice
To | Deliveries Personnel
From | Clearing House
Subject | Currency Delivery Netting
Effective Date | 06/10/03
Notice Number | 03-41
CME has amended Rule 739 � Delivery Netting to allow intra-commodity netting of delivery obligations in selected currencies for accounts maintained by the same beneficial owner. The rule change is effective with the June 2003 currency delivery cycle. Clearing members are prohibited from netting open positions across customer accounts while a currency contract remains eligible for trading on the Exchange. Clearing members shall be required to submit a Delivery Netting Request, which identifies the final positions and net currency delivery obligations to the Clearing House by 11:00 a.m., on the last day of trading, in accordance with the procedures outlined in the Clearing House Manual of Operations. Clearing firms may elect to use the alternative delivery procedures �ADP� to net delivery obligations for the following currencies: Australian dollar, British pound, Canadian dollar, Euros, Japanese yen and Swiss francs. This rule applies to delivery obligations only and firms are prohibited from netting open long and short positions in clearing. Firms should continue to report accurate open interest to the exchange through the termination of trading. Clearing firms must document each netting event on the Delivery Netting Request form. The form must be submitted to the Clearing House by 11:00 a.m. on the last day of trading for the specific currency contracts. Please contact the deliveries unit at (312)930-3172 if you have additional questions regarding this procedure.