New "SUB" Privately-Negotiated Trade Type

Clearing House Advisory Notices

To	Clearing Member Firms, Back Office Managers, Bookkeeping Service & System Providers
From	Clearing House Department
Subject	New "SUB" Privately-Negotiated Trade Type
Notice Date	2005-08-23
Notice Number	05-183
Effective Date
New "SUB" privately-negotiated trade type In the near future, subject to finalization of associated rule changes, CME plans to introduce two new privately-negotiated trade types: SUB’s (Substitution of Futures for Forwards) and Generic Privately-Negotiated Trades. The "SUB" trade type will allow a cleared futures transaction to be substituted for a privately-negotiated bilateral forward transaction. The generic privately-negotiated trade type will allow a privately-negotiated bilateral forward transaction to be kept as a forward, ultimately to be delivered at original trade price, but as a cleared, guaranteed (not bilateral) forward. For the full text of this advisory . . .