Clearing House Advisory Notices
To | Clearing Member Firms
From | Clearing House Department
Subject | Firm Testing for Expanded Product Codes, CME Auction Markets, etc.
Notice Date | 2005-07-27
Notice Number | 05-160
Effective Date |
In the five weeks beginning Monday August 15, 2005 and running through Friday September 16, 2005, we will provide firms with testing opportunities for the following enhancements and new products: • Expanded product codes: we will provide test electronic trades with three, four, and five-byte product codes. The first products to be introduced with an expanded product code, later in September, will be the mid-season weather futures and options and the CME Auction Markets products. The test data will allow firms to test with four and five-byte codes, but all of the products we launch at first will be limited to three-byte codes. • CME Auction Markets: test electronic trades will be provided to allow firms to verify that they can correctly process the "book-instrument" options trades resulting from filled orders in CME Auction Markets, including the small modification to the money calculations for these trades and their non-segregated status. • CBOT Crush Spread Options: scripts will be provided so that firms can submit test trades in CBOT crush options, have them matched, and process them through exercise and assignment and decomposition into the underlying legs. • Privately-negotiated trades with daily expirations: CME plans to make available in the near future the ability to do privately-negotiated trades, such as EFP's, in futures with daily expirations, and also to support a new privately-negotiated trade type using F as the trade type code. Other than having expirations specific to the day, and support for this new trade type, these will be handled in clearing in exactly the same manner as EFP's in monthly futures are. For the full text of this advisory . . .