• CME Clearing Weekly Notice: January 3, 2012

      • To
      • Clearing Member Firms; Back Office Managers
      • From
      • CME Clearing
      • #
      • 12-005
      • Notice Date
      • 05 January 2012
      • Effective Date
      • 05 January 2012

    •  
      Topics in this issue include:
       
      *      Deliveries
      ·         BPS IRS 1099 Notification #3
      ·         Firm Year-End Reports
       
      We are pleased to announce a list of CDS enhancements and changes that are scheduled to be implemented in December 2011 and January 2012 respectively. Please see below detailed list of the enhancements, including Production dates.
       
      Effective Date added to FIXML Trade Register:
      Please note that the CDS Effective Date (EventTyp="8") enhancement will NOT be included in this weekend’s release. We will publish another notice when this is to be released in Production. This enhancement is currently available in New Release for testing.
       
      Correction to Cash_Adj and Posn_Cash on CDS Positions Summary: 
      In PRODUCTION on Monday, January 9, 2012, the Cash_Adj and the Posn_Cash columns on the CDS Positions Summary CSV file are corrected to display the correct values. The Cash_Adj column will now represent the difference between the submitted Up-Front Fee and the CME calculated Up-Front Fee. The Posn_Cash column will now represent daily PAI. These changes have been made in New Release and are currently available for testing. Please keep in mind that CME Clearing has not yet determined a final date for the production launch of daily PAI, thus, until the launch of daily PAI in production, the Posn_Cash column will not contain any value.
       
      For any questions related to the above list of enhancements, please contact CME Client Services at (312) 338-7112 or via email to onboarding@cmegroup.com.
      This link provides the stockyards and slaughter plants that have been approved for deliveries against the CME Group Live Cattle futures contract from October 1, 2011 through January 31, 2012. Delivery point information and contact numbers are listed for your reference.
      If there any questions, please contact the Deliveries Unit at (312) 930-3172.
      This link provides the relevant delivery dates for January 2012 Chicago Mercantile Exchange Inc., Chicago Board of Trade, New York Mercantile Exchange, Dubai Mercantile Exchange, COMEX and GreenX contracts.
      BPS IRS 1099 Notification #3
      Please remember that November 30, 2011 marks the end of the 2011 tax year for brokerage. 
       
      This memo covers the entire 1099 process, including:
      ·Year End Reports
      ·Tax Adjustment Period
      ·Backup Withholding
      ·Firm 1099 Statements
      ·BPS 1099 Processing Schedule
       
      Year-End Reports
       
      Final CME and CBT 1099 Reports will be available on MRS on Tuesday January 3rd as “Final Broker’s Yearly Banking Summary”. NYMEX and COMEX 1099 Reports will be available for pickup at the trading floor’s master pulpit.
      ·   Tax Billing Group Details Report: This is a firm report that is available on BPS. Firms can use this report to verify 2011 tax details.
       
      2011 Firm 1099 Statements
       
      Firm 1099 statements will be produced for all brokers paid $600.00 or more for the 2011 Tax-year. If you pay brokerage into a corporation's account, we will produce 1099 statements under the corporation's Tax Identification number. Firms that plan to produce their own 1099 statements should notify the CME Group Clearing Services at ccs@cmegroup.com in writing by December 31, 2011, to request that we not produce 1099 Statements. The CME Group will create and send to the IRS a file that will include a record for each 1099 that we produce. 
       
      Mailing/Distribution Of Firms 1099 Statements:
       
      Firms have a choice to either distribute the 1099’s to the brokers or have CME Group Document Processing Center complete this for a fee. The cost of this service is $0.25 per envelope plus postage, subject to a minimum charge of $5.00 or you can purchase1099 envelopes from CME Group Document Processing Center at a cost of $4.00 for a pack of 24 envelopes. 
       
      2011 BPS 1099 Processing Schedule
       
      As a reminder, please reference the Clearing House Advisory Notice for 11-434 for a copy of the 2011 BPS 1099 Processing Schedule. The below link should serve as a reference as we go through the 1099 process.
       
       
      If you have any questions concerning 1099 processing, please contact CME Group Clearing Services at (312) 207-2525 or via e-mail at ccs@cmegroup.com. Thank you!
      On Tuesday, January 17, 2012 the CME will distribute 1099 Statements to all member firms. Firms have the option to pick the statements up or have the CME Group Document Processing Center mail these on their behalf.
       
      Picking Your 2011 1099 Statements Up:
       
      The statements will be available for pickup at the DPC Customer Service Window located on the 2ND floor South Tower of the CME Center at 20 S Wacker, Chicago IL, 60606 between the hours of 9:00 a.m. and 4:00 p.m.
       
      For security purposes we ask that each firm's Back Office Manager obtain an Officers signature to pre-register the individual who will be picking up the 1099 Statements. The form, posted to the web, should be completed and faxed to the CME Clearing House by January 17, 2012. Additionally, we are requiring that individuals picking up 1099 Statements display their CME Group ID cards.
       
      Mailing Your 2011 1099 Statements:
       
      Please be aware that the creation of the 2011 1099 statements will be in a format which will require special envelopes. Firms have a choice to either distribute the 1099’s to the brokers or have CME Group Document Processing Center complete this for a fee. The cost of this service is $0.25 per envelope plus postage, subject to a minimum charge of $5.00 or you can purchase the envelopes 24 @ $4.00. If firms elect DPC to mail the statements, firm copies can be mailed to the firm’s clearing house or available for pick up.
       
      Please e-mail betty.hanning@cmegroup.com or ronald.burton@cmegoup.com for either of the services offered and they will forward a service request form for you to complete. Arrangements for these services must be made by January 27, 2012. Questions can be directed to Betty Hanning at 312-930-3450 or Ron Burton at 312-930-3451.
       
      PLEASE PRE-REGISTER THOSE INDIVIDUALS AUTHORIZED TO PICK UP 1099’s.
      Note: Individuals not pre-registered will not be given 1099 reports
       
      The deadline for retrieving these reports is Thursday January 28, 2011.
      If you have any questions concerning 1099 processing, please contact the CME Clearing House at (312) 207- 2525 or email to ccs@cmegroup.com. Thank you.
      Effective Monday January 23, 2012, CME Clearing will begin offering FIXML exercise report to complement the currently available FIXML option assignment report. This will provide firms with enhanced straight through processing capabilities for both types of data. The reports will be available for testing in New Release beginning December 27, 2011.
       
      For the initial phase, the message format will be as follows:
       
      Field Name
      FIXML Attribute Name
      Data Type
      Description
      Supported Values/Notes
      PosMntRpt
      Message ID
      RptID
      String
      Unique identifier for this position report
       
      Transaction Type
      TxnTyp
      int
      Identifies the type of position transaction
      1 = Exercise
      2 = Do Not Exercise (**The value “2” will not be available until Phase II.)
      Action
      Actn
      int
      Maintenance Action to be performed.
      1 = New - used to increment the overall transaction quantity
      Clear Date
      BizDt
      LocalMktDate
      The Clearing Business Date covered by this request
       
      Settlement Session ID
      SetSesID
      String
      Identifies a specific settlement session
      EOD = End Of Day
       
       
      Banking, SPAN and Out-Trade Processing Cycles
      The intra-day and end-of-day banking and settlement cycles will occur at their normal times on Friday, December 30, 2011. There will be no banking and settlement cycle processing on Monday, January 2, 2012. The U.S. bank holiday will also prohibit the usage of January 2, 2012 as a “Settle date” for any and all foreign sovereign debt transactions.
       
      As securities near their maturity date, the values of these assets change and result in a change to their Performance Bond values at CME. With this, you may see change in the asset values on deposit with CME come Tuesday morning after the holiday.
       
      Also decrease in the values of these collateral assets from Friday to Monday may result in PB call/release, which would be banked Tuesday morning. These PB call/releases would be banked in addition to the regular RTH settlements for Friday
       
      SVIEF will be turned off for both the ITD and RTH cycles on Friday, December 30, 2011.
       
      Settlement variation and performance bond cash call/release amounts resulting from the Friday, December 30, 2011 RTH settlement cycle will be confirmed by settlement banks by 7:30 a.m. on Tuesday, January 3, 2012. Settlement banks will process cash flows resulting from Friday’s RTH settlement cycle on Tuesday, January 3, 2012.
       
      SPAN files will be produced on Friday, December 30, 2011, according to the normal schedule. There will be no SPAN files on Monday, January 2, 2012.
       
      Deposits Of Performance Bond Collateral
      The U.S. bank holiday will prohibit the posting of transactions dated Monday, January 2, 2012. Consequently, clearing firms will be unable to deposit or withdraw collateral on Monday, January 2, 2012.
       
      Foreign Currency Performance Bond Cash Withdrawals
      Due to the holiday’s effects on transaction processing, please note the following value dates on foreign currency performance bond cash withdrawals:
       
      Swiss franc, Australian dollar, New Zealand dollar, Swedish krona, Norwegian krone, Japanese yen, Turkish lira
       
      Trade Date
      Value Date
      Wednesday, December 28, 2011
      Thursday, December 29, 2011
      Thursday, December 29, 2011   
      Friday, December 30, 2011
       
      Canadian dollar, Mexican peso, Euro, British pound
       
      Trade Date
      Value Date
      Tuesday, December 27, 2011
      Tuesday, December 27, 2011
      Wednesday, December 28, 2011
      Thursday, December 29, 2011
      Thursday, December 29, 2011   
      Thursday, January 29, 2011
       
      *Canadian Holiday on December 27, 2011.
                                     
      FOREIGN CURRENCY SETTLEMENT VARIATION
      Please note the following value dates for foreign currency settlement variation.
                             
      Swiss franc, Australian dollar, New Zealand dollar, Swedish krona, Norwegian krone, Japanese yen, Turkish lira
       
      Trade Date
      Value Date
      Tuesday, December 27, 2011
      Thursday, December 29, 2011
      Wednesday, December 28, 2011
      Friday, December 30, 2011
      Thursday, December 29, 2011   
      Tuesday, January 3, 2012
       
      Canadian dollar, Mexican peso, Euro, British pound
       
      Trade Date
      Value Date
      Tuesday, December 27, 2011
      Wednesday, December 28, 2011
      Wednesday, December 28, 2011
      Thursday, December 29, 2011
      Thursday, December 29, 2011   
      Friday, December 30, 2011
       
      A.M. SETTLEMENT CONFIRMATIONS
      CME Group is closed on Monday, January 2, 2012. Therefore, your settlement bank will not provide an a.m. settlement confirmation for both U.S. dollars and foreign currency transactions on Monday, January 2, 2012. Instead, settlement banks will provide a.m. settlement confirmation on Tuesday, January 3, 2012. Payment for U.S. dollar settlement transactions from RTH cycle of Friday, December 30, 2011, will also occur on Tuesday, January 3, 2012.
       
      INTEREST EARNING FACILITY (IEF2)
      Please note the following adjustments to IEF2 processing:
       
      Deadlines for Funds                 12/30/11            01/02/12          
      *BlackRock                               2:00 p.m.          Closed             
      Cash Funds: Prime                                                      
      FedFund                                   2:30 p.m.
      TempFund                                2:30 p.m.
       
      *Dreyfus                                   2:00 p.m.         Closed             
      Institutional Cash Advantage                                           
      Treasury & Agency Cash Mgmt
       
      *DWS                                       2:30 p.m.         Closed             
      Gov Cash                                                        
      Money Market Series
       
      Federated                                 2:30 p.m.          Closed             
      Prime Obligations Fund            
       
      FFI                                           2:30 p.m.          Closed                         
      Select Institutional Fund
       
      *Goldman Sachs                      2:00 p.m.           Closed            
      Fin Square Money Market Fund                                     
      Financial Square Prime Obligations Fund
       
      *HSBC                                                                         
      Government                              1:00 p.m.          Closed             
      Prime Money Market                  2:00 p.m.          Closed             
       
      *JPMorgan                               2:00 p.m.          Closed             
      Prime Money Market
       
      *Morgan Stanley                       2:00 p.m           Closed             
      Institutional Liquidity Gov Portfolio                                                                    
      Institutional Liquidity Prime Portfolio
       
      RBC                                         1:00 p.m.          Closed             
      Prime Money Market
       
      SSgA                                       2:30 p.m.          Closed             
      Prime Money Market Portfolio
       
      State Street                              2:30 p.m.          Closed             
      Institutional Liquid Reserves                                                      
       
      UBS                                         2:00 p.m.          Closed             
      Select Prime
      Select Treasury
       
      Wells Fargo                              1:00 p.m.          Closed             
       Advantage Heritage Money Market Fund                                   
       
      *Same closing time for all funds unless otherwise noted.
      **Fund closing times are subject to change.
       
      No IEF2 purchases / redemptions will be allowed on Monday, January 2, 2012.
       
      INTEREST EARNING FACILITY 3; 4; 5 (IEF3/IEF4/IEF5)
      IEF3/IEF4/IEF5 processing will follow the usual schedule coinciding with regular banking activity for Friday, December 30, 2011.
       
      No IEF3/IEF4/IEF5 purchases / redemptions will be allowed on Monday, January 2, 2012.
       
      If you have questions on financial operational deadlines, please call the Financial Unit at (312) 207-2594.
       
      INTER-EXCHANGE PROCESSING
      There will be an AM and PM Inter-Exchange processing cycle on Friday, December 30, 2011.
       
      Normal Inter-Exchange processing will resume on Tuesday, January 3, 2012. For any SGX related issues, please call (312) 207-2525.
       

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