• KCBOT Clearing Eligibility Process for CME/CBOT Members

      • To
      • CME Clearing Member Firms; CBT Clearing Member Firms
      • From
      • CME Clearing
      • #
      • 13-122
      • Notice Date
      • 12 March 2013
      • Effective Date
      • 15 April 2013
    • Please be reminded that on Monday April 15, 2013, and pending regulatory approval, clearing processing for the Kansas City Board of Trade will be transitioned to CME Clearing.  Also effective on that date, all CME and CBOT clearing member firms will become eligible to clear KCBOT products.  There will be no additional capital, membership, or permit application requirements.  
      If you are a current clearing firm at KCBOT, nothing changes for you on this transition date, other than the change to process the products through the CME clearing system rather than the KCBOT clearing system. You will continue to clear KCBOT products as you currently do.  
      If you are a CME or CBOT clearing member but not a KCBOT clearing member, and you do not wish to clear directly, then likewise you do not have to do anything different on April 15. You may continue to clear trades in KCBOT products through an omnibus relationship, exactly as you currently do. If you are a NYMEX-only or COMEX-only clearing firm, and trade KCBOT products, you must continue to clear that business on the books of a current KCBOT clearing firm.   
      If you are currently a CME or CBOT clearing firm but are not currently a KCBOT clearing firm, you may elect to begin direct clearing of KCBOT products, on or after April 15.