• CME Clearing Notice: Monday, November 26, 2012

      • To
      • Clearing Member Firms; Back Office Managers
      • From
      • CME Clearing
      • #
      • 12-517
      • Notice Date
      • 29 November 2012
      • Effective Date
      • 26 November 2012
    • Topics in this issue include:
      *      Deliveries
      ·         Contact Information
      The following functionality will be available for testing in New Release after scheduled maintenance on Wednesday, November 28, 2012. The functionality is scheduled for production Monday, December 10, 2012.
      Deliveries Plus changes in the New Release environment have been postponed until Wednesday, December 5, 2012. There is no change to the production date of Monday, December 10, 2012.
      Deliveries Plus
      • Ability to view information across all exchanges on Invoice List, Invoice Summary and Assignment Summary screens.
      • Ability to search for inventory with or without an account number.
      • Metal
        • Ability to enter metal intents by allowing a user to select an account number then issue type.
      • Financial
        • Expansion of delivery instruction fields.
        • Ability to assign origin to delivery instructions.
      • Energy
        • DLV520 Report – Addition of contract quantity.
        • Oman Crude Oil - Ability to enter a delivery quantity outside of tolerance levels. A delivery quantity submitted outside of tolerance levels will require an explanation by the clearing member firm.
        • Oman Crude Oil – Introduction of an Exchange approval step for all delivery confirmations. Once a buyer and seller submit their delivery confirmation in Deliveries Plus, the Exchange in coordination with DME will approve the delivery and short margin will be released in the next available cycle. 
      If there are any questions, please contact Deliveries at 312.930.3172.
      Clearing member firms using the Legacy WAN environment are required to complete the conversion to the new server and, if necessary, convert from FTP to SFTP by March 1, 2013.
      The Legacy WAN environment includes the following addresses:
      ·         FTP:
      ·         SFTP:
      The new environment is available at the following addresses using SFTP:
      ·         Production:
      ·         Disaster Recovery:
      We recommend the use of a non-production file name convention when sending a test file.
      For clearing member firms that have not converted to the new SFTP IP address by March 1st, 2013, a $5,000 monthly maintenance fee will be assessed to use the old FTP server.
      We request that each clearing member firm, and any other organization connecting via FTP, to please provide CME Clearing with contact information (name, phone number and email) of the primary and back-up contacts for this conversion effort. Once firms have tested and converted activity to the new environment, credentials will be removed from the legacy server.
      For further information or assistance please contact Clearing Services at (312) 207-2525 or
      The start date for CMECE testing has been finalized. Following is the updated FEC+ deployment schedule:
      ·         Testing for ALL post-trade processing, including give-ups, average-priced give-ups, and cross-exchange allocations, using the FPL-compliant FIXML 5.0 API, is currently available in New Release.
      This includes both outbound and inbound messaging capabilities. FECPlus in New Release is used to manage all post-trade processing transactions. The existing FIXML 4.4 API is not used for any post-trade processing in New Release.
      ·         Thursday, September 26: Testing for the migration of post-trade processing to FECPlus for CMECE will begin in the CMECE CERT test environment using the FPL-compliant FIXML 5.0 API.
      ·         Monday, January 14, 2013: Production launch date for migration of post-trade processing to FECPlus for CMECE using the FPL-compliant FIXML 5.0 API.
      ·         Monday, February 25, 2013: Production launch date for migration of ALL post-trade processing, including give-ups, average-priced give-ups, and cross-exchange allocations to FECPlus for CME/CBT/NYMEX/COMEX/DME using the FPL-compliant FIXML 5.0 API.
      To help the clearing community prepare for the launch, the Clearing House will publish a test script for testing Post-Trade Processing on FECPlus by Mid-September. Firms should use this high-level test script, in addition to their own test scenarios, to verify their readiness for the Production Launch.
      Beginning in November, the Clearing House will check in periodically with firms on their testing status and to offer assistance with testing. Please contact CME Clearing Services (CCS) with any questions related to FECPlus testing or the overall FECPlus migration.
      For questions or further information please contact CME Clearing Services (CCS) at 312-207-2525 or ccs@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 February 1, 2012 through January 31, 2013. Delivery point information and contact numbers are listed for your reference.
      Listed in the linked advisory notice below are the relevant delivery dates for November 2012 Chicago Mercantile Exchange Inc., Chicago Board of Trade, NYMEX, and DME contracts.
      Listed in the linked advisory notice below are the relevant delivery dates for December 2012 Chicago Mercantile Exchange Inc., Chicago Board of Trade, NYMEX, and DME contracts.
      Please be reminded that effective December 2, 2012, for trade date December 3, 2012, the New York Mercantile Exchange, Inc. will resume the listing of the Daily European Union Allowance (EUA) futures contract (commodity code EUL, chapter 1260).  The contract will be available for trading on CME Globex and for submission for clearing through CME ClearPort.  The daily contract shall be listed for the current business day plus the next business day.
      Exchange Hours:
      CME Globex and CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT).
      Launch Date Delayed to Monday, December 3, 2012
      As a result of the storm on the U.S. East Coast and its significant impact on our customers, we are delaying the launch of new Deliverable Interest Rate Swap Futures to Monday, December 3, 2012. This move is designed to give our market participants additional time to prepare for the launch.
      About Deliverable Swap Futures
      Deliverable Swap futures are a cost-effective way to access interest rate swap exposure with the margin efficiencies and transparency of futures:
      ·         Margin savings from futures-style margining, risk offsets with Eurodollar and Treasury futures and options, automatic netting of positions and more
      ·         Coming in early 2013 - Portfolio margining with cleared OTC interest rate swaps
      ·         Ability to roll futures positions or take delivery of a CME cleared interest rate swap
      ·         Flexible execution via CME Globex, block trades, EFRPs and open outcry on the trading floor
      ·         Enables participants to trade in an OTC manner – ability to block calendar spreads with: 
      o    Lower block thresholds
      o    Longer reporting times
      o    No block surcharges

                      View block list contacts (page 17 of product overview)

      Where to Learn More:
      • Listen to the recorded Deliverable Swap Futures webcast
      • Read the product overview
      • Get the latest product updates
      For questions or further information please contact CME Clearing Services (CCS) at 312-207-2525 or ccs@cmegroup.com.
      Effective with the expiration of their November 2012 contracts, please be advised that the New York Mercantile Exchange, Inc. (NYMEX or Exchange) will update the final settlement dates for the products listed below. The Product Descriptions, commodity codes, current final settlement date rules, and new final settlement date rules are listed below:
      Please be advised that on December 3, 2012, CME Clearing will implement a change in SPAN® methodology allowing volatility offsets for correlated products.
      These changes will be applied to the modified-split version of the published SPAN files ONLY (ftp://ftp.cmegroup.com/pub/span/data/cme). PA2 files without modified-split (ftp://ftp.cmegroup.com/pub/span/data/cme/noMOD) will remain unchanged and will stay compatible with prior versions of PC-SPAN®. Please see following advisory for more information on location of these files: http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv12-405.pdf
      In conjunction with this update to the margin methodology, CME Clearing will be releasing a new version of the margining software. The PC-SPAN version 4.5 build 561 will be required to calculate margins in Production effective December 3, 2012. This new software will be required for all products including CDS, OTC FX, and ERIS products. Please note that there will be no changes to margin methodology or requirements for any products other than those directly affected by volatility offsets.
      November 30, 2012 marks the end of the 2012 BPS tax year for brokerage. The following 1099 processing schedule will be effective for the 2012 tax year:
      Friday, December 07, 2012
      Deadline for initial 1099 adjustments.
      Monday, December 10, 2012
      Preliminary CME, CBT, NYMEX and COMEX 1099 Reports will be available in MRS (Member Reporting System) as report named “Prelim Broker’s Yearly Banking Summary” which will reflect initial adjustments made by December 07, 2012. In BPS, firms can run the Tax Billing Group Details report to verify their tax details.
      Friday, December 28, 2012
      Deadline for final adjustments to the Firm 1099 Reports.
      Thursday, January 03, 2013
      Final CME, CBT, NYMEX and COMEX 1099 Reports will be available on MRS as “Final Broker’s Yearly Banking Summary”.
      Monday, January 07, 2013
      Deadline for reporting any discrepancies in 1099 Reports to the CME Clearing House.
      Thursday, January 17, 2013
      Distribution of 1099 Statements to clearing member firms. As in past years, firms will be able to elect the CME Group to send out the statements for a fee. Details will be included on a subsequent advisory.
      Thursday, January 31, 2013
      Deadline for clearing member firms to distribute 1099 statements to brokers.
      March 2013
      Deadline for CME sending 1099 Statement Tape to the IRS.
      Please ensure the appropriate staff receives a copy of this schedule.
      If you have any questions concerning BPS or 1099 processing, please contact: CME Group Clearing
      Services at 312.207.2525 or ccs@cmegroup.com.
      The Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) is moving the launch date of the new Standard-size and E-micro-size U.S. Dollar/Offshore Chinese Renminbi (“USD/CNH”) futures contracts that were originally scheduled to be listed for trading on CME Globex® and CME ClearPort® on Sunday, November 18, 2012 for trade date Monday, November 19, 2012. Refer to Clearing Advisory “12-400” previously published on September 19, 2012.
      The revised launch date for the new Standard-size and E-micro-size USD/CNH futures contracts will be Sunday, February 24, 2013 for trade date Monday, February 25, 2013.
      This advisory describes CME’s new physically delivered FX futures on the exchange rate between the US Dollar and the Offshore Chinese Renminbi. These are referred to as Standard USD Offshore Renminbi (USD/CNH) Futures and E-micro USD Offshore Renminbi (USD/MNH) Futures. The Globex and clearing product codes for the two new futures are CNH and MNH, respectively.
      Effective on Sunday, February 24, 2013, for the trade date of Monday, February 25, 2013, CME is launching new Standard-size and E-micro-size U.S. Dollar/Offshore Chinese Renminbi (USD/CNH) Futures contracts on CME Globex and CME ClearPort. These futures contracts feature physical delivery of Offshore Chinese Renminbi (CNH), priced in interbank terms of Offshore Chinese Renminbi per U.S. dollar with associated daily settlement variation banked in Offshore Chinese Renminbi, and fungible (offsetting) on a 10 to 1 basis between the micro and the full-sized contracts.
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