Client  Management Advisory Notices
To All Firms and Back Office Managers
From Client Management Operations
Subject ACS/API Sub-Allocation Enhancement
Notice Date 2003-11-10
Notice Number CMO#0426
Effective Date  

Please note that in the coming month, CME will implement a minor change in our methodology for assigning trade id sequence numbers for ACS/API sub-allocations. Firms requested this change to enable their systems to handle the sub-allocation trade id sequence numbering. Sub-allocation, also known as Third Party give-ups, are done when a Carry Firm re-allocates their give-in trades to themselves or other firms. Below, are examples of the current trade id sequencing method, followed by the new planned method.

Current Method:  When a firm performs a sub-allocation via API, the firm submits GU message.  The following example summarizes the sequence of events that occur when carry firm claims and sub-allocate give-up trade to third party. Assume that order number 1234 has been allocated to firm 999, and firm will be claim and allocate the trade to firm 777.

1.       Carry firm 999 submits a GC message to claim a give-up trade. The GC trade id sequence number 500001.

2.       CME replies with a confirmation message GCC with using the same trade id 500001.

3.       Firm 999 submits a GU message to sub-allocate the trade to firm 777. The same trade id, 500001 is assigned to the GU message.

4.       CME replies to firm 999 and sends a confirmation GUC message to the firm with a new assigned trade id, 500002.

Note: Some firms have indicated their inability to handle the trade id differently, and that’s why there is a sub-allocation proposed solution.

Proposed solution:

Using the prior example, in step 4, the CME will assign the GUC a trade id identical to the GU API message 500001 in the firm trade id field.  The newly assigned Group trade id number 500002 will be sent in APS Group ID of the TREX message main block. The GSA messages which follows the GUC message will have the newly assigned Group Trade ID ( 500002 ), in Firm Trade ID and APS Group ID field.

Please advise if this change will have any impact on your Give-up sub-allocations. For questions or concerns, please contact Client Management Operations at (312) 930 8159.

Thank you.