Clearing House Advisory Notices
To | Clearing Member Firm, Back Office Managers, Bookkeeping Service & System Providers
From | Clearing House Department
Subject | REMINDER: CME-FLEX Option System Enhancement Effective Friday, May 4, 2007
Notice Date | 2007-05-02
Notice Number | 07-98
Effective Date | 2007-05-02
On Friday, May 4, 2007, FLEX option processing for CME products will be migrated from the current 3270-based application to a two-sided trade entry process in Front End Clearing. As part of this migration, CME trading floor staff will no longer enter FLEX trades in clearing. In other words, “pit-side” matching will be eliminated. Clearing firms will be responsible for submitting FLEX trades to FEC for CME products, exactly as they currently do for CBOT flex options. After trades are entered in FEC, CME will send FLEX clearing confirms to clearing firms. No changes will be made to the current practice of purging unmatched FLEX trades will from clearing after the 7:00 pm trade submission deadline. As with CBOT flex options, CME FLEX trades may be given-up via ACS, but cannot be average priced. For the full text of this advisory. . .