The CFTC has approved holding customer positions in CBOT OTC ethanol contracts in
standard customer-segregated accounts.
This is good news both because (a) it provides stronger customer protections
associated with the “segregated” status, and (b) it eliminates certain reconciliation issues firms
have with customer positions in non-seg accounts.
The change in status of these positions will be accomplished in the clearing system
on
Friday, October 10
th. Here’s how it will work. Suppose you are firm 111, and
your normal CBOT customer positions are held in a 111B customer position account.
Currently: customer trades done in these products post to a special “111D”
house position account.
On Friday, October 10
th:
·
Special position adjustments will be processed in the clearing system to move the
start-of-day positions from the “111D” house position account, to the standard “111B” customer
position accounts.
·
New customer trades in these products will post to the standard “111B” customer
position account going forward.
Affected OTC products are as follows:
·
71 – Forward Month Ethanol Swap, and Cash-Settled Options on these
swaps
·
73 – New York Harbor Ethanol Basis Swap
·
74 – Los Angeles Ethanol Basis Swap
·
75 – Gulf Coast Ethanol Basis Swap
·
76 – Cash-Settled Ethanol Options
For more information please contact CME Clearing at 312-207-2525.
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