• Phase Introduction of Mandatory Globex Credit Controls

      • To
      • Clearing Member Firms; Back Office Managers
      • From
      • CME Clearing
      • #
      • 10-153
      • Notice Date
      • 09 April 2010
      • Effective Date
      • 09 April 2010
    • In order to enhance the risk management tools available to clearing firms utilizing CME Globex®, CME Group (on behalf of CME/CBOT/NYMEX/COMEX) rolled out enhanced Globex Credit Control functionality, commonly referred to as “GC²”, in May 2009.  The purpose of GC² is to provide clearing firms with an additional, backstop risk management tool that allows for flexible administration of limits on the accumulation of daily exposure on CME Globex.  GC² was initially made available to clearing firms on a voluntary basis.   Effective June 25, 2010, it will be mandatory that clearing members employ GC² credit control functionality on every one of their Globex Execution Firms per the phased schedule noted below.   

      In assessing the risks attendant to today’s electronic trading environment, the Clearing House Risk Committee recently approved Rule 949 (Credit Control Policy). 

      For the full text of this advisory...