Clearing House Advisory Notices
To | Clearing Member Firms, Chief Financial Officers, Back Office Managers
From | Clearing House Department
Subject | December 2006 CBOT Financial Delivery Cycle
Notice Date | 2006-11-20
Notice Number | 06-286
Effective Date | 2006-11-20
For your information, following is an overview of the CBOT Financial delivery cycle as well as a reminder of the CME Delivery guarantee. CME Clearing House will be contacting firms on the last trade dates below to confirm their final positions.
Products | Initial Inventory | First Intent | First Notice | First Delivery | Last Trade | Last Intent | Last Delivery
T-Bonds/10Yr. Notes. | Nov 29 | Nov 29 | Nov 30 | Dec 1 | Dec 19 | Dec 27 | Dec 29
2 Yr. Notes/5Yr. Notes | Nov 29 | Nov 29 | Nov 30 | Dec 1 | Dec 29 | Jan 3 | Jan 4
The CBOT Financial delivery cycle involves three days. The major events on each date are listed below: Day 1 Intents must be entered into the Delivery System by 8:00 p.m. Assignment processing will occur after 8:00 p.m. daily. Day 2 Shorts must select the instruments they will deliver and confirm their invoices by 2:00 p.m. Longs may enter bank account information on invoices the shorts have confirmed until 4:00 p.m. Day 3 Physical delivery of the intents of Day 1 in the 30 Year Bond, 10 Years Note, 5 Year Note contracts occurs prior to 1:00 p.m. Longs or shorts must notify the CME Clearing House of a failed delivery by 2:00 p.m. in order to avail themselves of the guarantee protections pertaining to the delivery process. Firms that have long positions should maintain those positions daily throughout the delivery cycle, adding and removing dates as necessary. CME and CBOT staff will be monitoring firm positions and long date totals. For the full text of this advisory . . .