• CME Clearing Notice- Monday, January 7, 2013

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      • Clearing Member Firms
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      • CME Clearing
      • #
      • 13-011
      • Notice Date
      • 11 January 2013
      • Effective Date
      • 11 January 2013

    • NOTICE #: 13-011
      SUBJECT: CME Clearing Notice: January 7, 2013
      Topics in this issue include:
      ·         Legacy FTP Site Removal
      *      Deliveries
      ·         Contact Information
       
       
      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: 198.212.145.45
      ·         SFTP: 198.212.145.46
      The new environment is available at the following addresses using SFTP:
      ·         Production: 167.204.41.33
      ·         Disaster Recovery: 167.204.21.33
      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 e-mail SFTPConversion@cmegroup.com
      Following is the 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:
      o    New Release for CME/CBT/NYMEX/COMEX/DME
      o    CMECE CERT for CMECE.
      This includes both outbound and inbound messaging capabilities. FECPlus in New Release/CMECE CERT 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/CMECE CERT.
      ·          Monday, January 28, 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.
      The Clearing House published a test script for testing Post-Trade Processing on FECPlus (see CH Advisory #12-532). Firms should use this high-level test script, in addition to their own test scenarios, to verify their readiness for the Production Launch. 
      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.
      As a reminder, Monday, February 25, 2013, is the 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.
      In order to help the clearing community prepare for the launch, the Clearing House has created a test script for testing Post-Trade Processing on FECPlus. Firms should use this high-level test script, in addition to their own test scenarios, to verify their readiness for the Production Launch. As always, firms should test FEC+ the same way they use FEC Production functionality in order to achieve the best test.
      CME Clearing Services will be available to assist with test scenarios or to help pair up firms to test together. Please contact us with questions or concerns.
      For questions or further information please contact CME Clearing Services (CCS) at 312-207-2525 or ccs@cmegroup.com.
      Effective Friday, January 25, 2013, the legacy ftp://ftp.cme.comdomain name will no longer be available starting at 5:00 p.m. Central Time (CT). All customers should access the public CME Group ftp site using ftp.cmegroup.com. Please update your scripts and bookmarks accordingly.
      If you have any questions, please email ccs@cmegroup.com .
      Pursuant to CFTC regulations and in conjunction with the industry, CME Clearing will implement Customer Gross Margining at the end-of-day settlement cycle on Monday, January 14, 2013.
      We have been running in full production parallel for some months now. Clearing firms must continue daily submission of CGM position data files every evening. The submission deadline is 7:30 pm Chicago time.
      Three data files are available every night to firms in their Outgoing directory on the Firm FTP server:
      ·         CME.CGM.Margins.Summary.EOD.yyyymmdd.CMFnnn.csv
      Shows the CGM margin requirements, customer account by customer account, by currency and in USD-equivalent.
       
      ·         CME.CGM.PosRecon.EOD.yyyymmdd.CMFnnn.csv
      Show submitted versus reconciled CGM positions, and the Excess Margin Positions.
       
      ·         CME.CGM.Margins.Compare.EOD.yyyymmdd.CMFnnn.csv
      Shows one record for each affected customer-origin performance bond account.
      Shows both clearing-level initial margin requirements as they are currently, and what they would be if Customer Gross Margining were already in effect. In total USD-equivalent. The comparison is done for both the risk requirement and the total requirement (ie, taking option value into account.)
      We suggest that firms pay special attention to the Margins Compare report, as this will allow firms to anticipate how their margin requirements will change.
      For more information please contact CME Clearing’s Risk Hotline at 312-648-3888.
      Deliveries
       
      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 January 2013 Chicago Mercantile Exchange Inc., Chicago Board of Trade, NYMEX, and DME contracts.
       
      Effective for trade date Monday, January 7, 2013 NYMEX is revising the listing rules for the listed products at this link so that December 2014 is the last available contract month, with subsequent contracts being removed from trading.
      Please be advised that effective Friday, March 8, 2013 RTH cycle CME Clearing (CME) will use price plus accrued (dirty price) for securities. Price plus accrued includes the accrued interest in the value of the security. Please note this will affect U.S. treasuries, agencies, and foreign sovereign debt. Price plus accrued does not apply to mortgage backed securities. This change in pricing methodology will not affect haircuts. Please see CME Clearing website for acceptable collateral and applicable haircuts. 
      For any questions regarding the change to price plus accrued, please contact CME Clearing Financial Unit at (312) 207-2594 or Risk Management department at (312) 648-3888.
      Please be advised that a “black out” auction day on Mondays has been added for Amarillo, TX and a “black out” auction day on Wednesdays has been added for Dodge City, KS.
      Clearing members are advised the Deliveries application will prevent “sellers” from tendering certificates for Live Cattle deliveries that would occur on an auction day, so that deliveries do not interfere with the auctions and vice versa. At this link is a revised schedule of Live Cattle “black out” auction days.
      Effective January 13, 2013, for trade date January 14, 2013, the New York Mercantile Exchange (NYMEX) is amending the minimum price increment for ten European refined oil swap futures and option products. The minimum tick is changing from 0.01 to 0.001 on the products listed at this link.
      Effective Sunday, January 13, 2013at this link. This reverses a change made in May 2012., for trade date Monday, January 14, 2013, and pending all relevant CFTC regulatory review periods, the New York Mercantile Exchange, Inc. will amend the minimum price increment from $0.001 per barrel to $0.01 per barrel for the Crude Oil products listed
      Currently, the Exchange lists three (3) consecutive Weekly options on both Standard and Poor’s 500 Stock Price Index Futures and on E-mini Standard and Poor’s 500 Stock Price Index futures contracts at any given time. Under the new listing procedure, the Exchange will list four (4) consecutive Weekly options on both Standard and Poor’s 500 Stock Price Index futures and on E-mini Standard and Poor’s 500 Stock Price Index futures contracts at any given time.
      Please click here to view an advisory containing the December 2012 Final Foreign Currency Settlement Prices, distributed on December 17, 2012.
      On November 30, 2012, CME Group acquired the Kansas City Board of Trade and the KCBOT Clearing Corporation. For more information please see:
      CME plans to integrate clearing processing for KCBOT on Monday, April 15, 2013, pending regulatory approval. We are aiming for this early date because clearing firms are eager to achieve the operational efficiencies which will come with clearing integration. Note that prior to that date, there will be minimal operational changes, and all existing KCBOT clearing processing will continue in the current KCBOT systems without modification.
      Friday April 12, 2013, will be the last day in which clearing processing for KCBOT occurs in the KCBOT systems. On Saturday morning April 13, the ending KCBOT positions as of Friday will be loaded into the CME clearing system, and beginning on Sunday evening April 14, clearing processing will be done in the CME clearing system.
      We are planning the transition in a manner which we believe will result in absolutely minimal impact to clearing firms and bookkeeping systems.
      On Monday, January 14, 2013, pursuant to CFTC regulations, CME Clearing will implement Customer Gross Margining (“CGM”). This advisory is being published to provide clearing firms with more details on how the new margining process will reconcile positions as determined in the clearing system, versus positions as reported by the clearing firms as part of the CGM data file submissions.
      The details of the reconciliation process are important because if the positions held in Clearing differ from what is reported by the firm through CGM, we calculate a margin requirement for these “excess margin” positions, and include this in the total requirement charged to the clearing firm in the customer origin.
      For the full text of the advisory describing this process and report (12-564) please click here.
       
      For more information please contact CME Clearing Client Services at 312-207-2525, or CCS@cmegroup.com.
      In conjunction with regular review of market volatility to ensure adequate collateral coverage, please find the current acceptable collateral and haircuts for CME Clearing at this link. CME Clearing reports no additions or deletions to the acceptable collateral list. Please see CME Clearing website for more details.
      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:
      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:
      Date
      Action
      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.
      On Thursday, January 17, 2013 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 2012 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 attached form should be completed and faxed to the CME Clearing House by January 17, 2013. Additionally, we are requiring that individuals picking up 1099 Statements display their CME Group ID cards.
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