Client Management Advisory Notice
From | Client Management Operations
Subject | Announcing The Positions Services API (Application Programming Interface).
Effective Date | 01/17/03
Notice Number | CMO#0340
We are pleased to announce the new Positions Services API (Application Programming Interface), which is our next step in providing CME�s clearing member firms with full Straight-Through-Processing capabilities for clearing transactions. Position Services API Attributes The new Positions Services API will enable clearing member firms to submit position-management transactions, via messages sent from their bookkeeping systems. Until now, these transactions could only be completed via the online Clearing 21 applications or, in the case of PCS, data file submission via batch. The transactions covered by the Position Services API include: Option Exercises Do-Not-Exercise (�abandonment�) notices Option assignments Position Adjustments PCS for Margining and Spreading of Positions Real-time trade-register data on demand � including requesting and retrieval of real-time position data, including position quantities, accumulated variation and premium amounts, etc. Receiving notices of option assignments is a new feature which should enable firms to automate the processing of assignments to specific customer accounts. The on-demand trade register data should also enable firms to improve their risk management and balancing functions. Implementation Using FIXml Data Format The new Positions Services API will be implemented using the newly proposed version of FIXml. FIXml uses Extensible Markup Language (XML) to implement the FIX standard for describing data for clearing transactions. CME is currently working together with the Futures Industry Association (FIA) and the Fix Protocol Ltd. Organization to develop this new standard. FIXml will provide two primary benefits: � Cost savings from standardization of message formats, and � Cost savings and flexibility provided by XML With XML, expanding existing fields or adding new fields can be done at dramatically lower cost than with the current fixed-length data formats. CME and other exchanges currently use FIX for electronic order routing, and the use of FIXml for clearing transactions is a natural choice. Please note that the use of FIXml for the Positions Services API will not require clearing firms to implement the FIX message protocol for clearing transactions. Firms can continue to use their proven MQM protocol for transmitting the messages to CME. FIXml will be used only for formatting the data contained inside the messages transmitted via MQM. Additional Planned API Implementations After the deployment of the Positions Services API, the next API to be implemented will support submission and claiming of Block trades and EFP�s. This will allow automation of functions which today must be accomplished manually via the online Block/EFP System. Also, as soon as testing with firms is completed, we will deploy an API feature that will give firms the ability to update non-critical data, such as origin, on electronic trades (�ETP change messages�). And when the new Allocate/Claim System (�ACS�) is rolled out on January 31st, firms will be able to do sub-allocations via the Give-Up API. Complete information about the Positions Services API is available. Please contact Client Management to obtain a copy. An implementation date will be announced after ACS is implemented on January 31, 2003. In the meantime, if you have any questions, please contact Client Management Operations at 312/930-8159. Thank you!