• Commingling of KCBT Swaps and Futures Funds after the Transfer of Open Interest from KCBT to CBOT

      • To
      • Clearing Member Firms; Back Office Managers
      • From
      • CME Clearing
      • #
      • 13-572
      • Notice Date
      • 16 December 2013
      • Effective Date
      • 16 December 2013
    • As described in Clearing House Advisory Notice # 13-564, http://www.cmegroup.com/tools-information/lookups/advisories/clearing/Chadv13-564.html, the CFTC has issued an order permitting the Kansas City Board of Trade (KCBT) to transfer open interest for KCBT-listed contracts to the Chicago Board of Trade (CBOT). The transfer occurred on Saturday, December 14, 2013, and is effective for trade date Monday, December 16, 2013.
      In connection with the planned transfer of open interest, KCBT and CBOT jointly petitioned the CFTC to amend KCBT’s existing 4d order—which permits the clearing house (CME Clearing) and futures commission merchants (FCMs) to commingle funds from customer positions in KCBT cleared-only wheat swaps with funds from customer futures and options positions—so that it would remain in effect after the transfer. The CFTC has issued an order permitting the continued commingling of such funds. 
      Subject to conditions outlined therein, the order will permit CME Clearing, registered FCMs that are clearing members of CME, and registered FCMs that are clearing members of CBOT to commingle customer funds used to margin, guarantee or secure legacy KCBT cleared-only wheat swaps with other customer funds after the transfer of open interest is completed. Please refer to the attached order as the authoritative source for the terms and conditions applicable to FCMs and CME Clearing.    
      For further information, please contact CME Clearing at (312) 207-2525, or email at ccs@cmegroup.com.