Topics in this issue include:

      System Updates

·         FECPlus Phase 2: Electronic Trade Migration (ETM) *UPDATE* - November 2, 2014

      Deliveries

·         NEW: CME Group Delivery Dates for November 2014

·         CME Group Delivery Dates for October 2014

·         2014 Approved List of Live Cattle Stockyards & Slaughter Plants

      Events & Announcements

·         NEW: OTC Holiday Advisory- Veterans Day

·         October 2014 Eligible ETFs and Stocks

·         Product Modification Summary: Increase Strike Price Interval for Weekly Options on Standard and E-mini S&P 500 Futures to 100, October 19, 2014

·         Minimum Price Increment Change, Settlement DPL and BTIC Listing (USD-Denominated Ibovespa Futures)

·         Product Modification Summary: Henry Hub Natural Gas Minimum Price Increment

·         BPS/GPS ACH Credit/Debit Statement Identifiers

·         Cash Interest Pass-Through & Collateral Fees, January 2, 2015

·         Review of Collateral Haircuts Advisory

·         Product Modification: Extend the listing of the U.S. Midwest Hot-Rolled Coil Steel Futures (HR) – October 19, 2014

·         Feedback Requested on System Information

·         Contact Information

Deliveries

NEW: CME Group Delivery Dates for November 2014

Listed here are the relevant delivery dates for the November 2014 Chicago Mercantile Exchange Inc., Chicago Board of Trade, NYMEX, COMEX, and DME contracts.

CME Group Delivery Dates for October 2014

Listed here are the relevant delivery dates for the October 2014 Chicago Mercantile Exchange Inc., Chicago Board of Trade, NYMEX, COMEX, and DME contracts.

2014 Approved List of Live Cattle Stockyards & Slaughter Plants

The attached Stockyards and Slaughter Plants have been approved for deliveries against the CME Group Live Cattle futures contract from February 1, 2014 through January 31, 2015. Delivery point information and contact numbers are listed for your reference.

See the full advisory.

If there are any questions, please contact the Deliveries Unit at (312) 930-3172.

NEW: OTC Holiday Advisory- Veterans Day

On Tuesday, November 11, 2014 (Veterans Day), CME Clearing will be open to clear trades. Due to the holiday, however, there will be several impacts to CME Clearing’s processing and trade submission timelines for OTC products. For REVISED details on these impacts, please see the tables in this link.

October 2014 Eligible ETFs and Stocks

CME Clearing accepts a select number of shares of ETFs and stocks for customer and house segregated performance bond collateral for Base Guaranty Fund products. Both ETFs and stocks are category 4 assets and are capped in total at $1 billion per clearing member firm. Please refer to the Standard Acceptable Collateral and Resources website for further details regarding acceptable collateral, haircuts, and limits.

For ETF and stock acceptance criteria and a list of eligible ETFs and stocks, please see Standard Acceptable Collateral and Resources website. CME Clearing utilizes a tiering methodology based on average daily volume to determine the number of eligible shares per clearing member firm.

For further information, please click here.

Product Modification Summary: Increase Strike Price Interval for Weekly Options on Standard and E-mini S&P 500 Futures to 100, October 19, 2014

Effective Sunday, October 19, 2014 for trade date Monday, October 20, 2014 and pending all relevant CFTC regulatory review periods, please be advised that the Chicago Mercantile Exchange, Inc. (CME or EXCHANGE) will increase the strike price range for the weekly option products listed here on CME Globex and Open Outcry.

Minimum Price Increment Change, Settlement DPL and BTIC Listing (USD-Denominated Ibovespa Futures)

Effective Sunday, October 19, 2014 for trade date Monday, October 20, 2014 and pending all relevant CFTC regulatory review periods, please be advised that the Chicago Mercantile Exchange Inc. (CMEE) will amend the minimum price increment and BTIC daily settlement price increment for the USD-DENOMINATED IBOVESPA futures contract.

For the full text of this advisory, please click here.

Product Modification Summary: Henry Hub Natural Gas Minimum Price Increment

Effective Sunday, November 2, 2014 for trade date Monday, November 3, 2014 and pending all relevant CFTC regulatory review periods, please be advised that the New York Mercantile Exchange, Inc. (EXCHANGE) will amend the minimum price increment for Natural Gas products. The minimum tick is changing from 0.0001 to 0.001 on CME GLOBEX, CME ClearPort and the NYMEX trading floor.

For the full text of this advisory, please click here.

BPS/GPS ACH Credit/Debit Statement Identifiers

Please be advised that the BPS and GPS ACH debits/credits will now contain a message on the Harris ACH statement identifying the payment as a ‘Give-Up Payment’ or ‘Brokerage Paymnt’ for each particular exchange.

For the full text of this advisory, please click here.

Cash Interest Pass-Through & Collateral Fees, January 2, 2015

On January 2, 2015, the CME Inc. Clearing House (“CME Clearing”) will institute changes to its collateral acceptance program which will result in clearing members being charged for the below asset types when posting collateral to meet client and house performance bond requirements. CME Clearing has decided to charge these fees due to the custody costs applied to CME Clearing by its custodians and liquidity costs associated with recently implemented CFTC clearing house regulations.

CME will impose a fee of 4 basis points (annualized) on the below asset types used to meet client and house performance bond requirements. For clearing members that are eligible* to participate in CME Clearing’s committed credit facility (directly or through an affiliate) and do so, CME will impose a reduced fee of 1 basis point (annualized). For clearing members that are not eligible, and do not have any affiliates that are eligible, to participate in CME Clearing’s committed credit facility, CME will impose a reduced fee of 1 basis point (annualized).

Example: A 4 basis point fee on $100 of collateral on deposit would equal 4 cents per annum in fees and a 1 basis point fee on $100 in collateral on deposit would equal 1 cent per annum in fees. 

These fees will apply to collateral posted to meet performance bond requirements for both client and house accounts. No fees will be imposed on collateral in excess of performance bond requirements.

Asset Types Subject to New Fee Schedule:

• Exchange Traded Funds
• Foreign Sovereign Debt
• Mortgage Backed Securities
• Stocks
• Treasury Inflation Protection Securities
• U.S. Treasury Securities
• U.S. Government Agency Securities
• U.S. Treasury STRIPS

Fees will be calculated on daily balances and charged monthly.

Please note, CME Clearing currently charges fees for the below asset types used to meet performance bond requirements and is not changing those fees.

Asset Types Subject to Existing Fee Schedule:

• Corporate Bonds (IEF4)
• Gold

CME will also begin passing through interest on US dollar cash posted as collateral to meet performance bond requirements (excluding CME/OCC cross margin accounts), guaranty fund requirements, and clearing membership requirements. CME will pass through interest on US dollar cash deposits using a rate published on CME Group’s website.  Interest will be calculated on daily balances and paid monthly. 

For questions regarding the fee schedule, interest pass through or committed credit facility, please contact Suzanne Sprague (312-930-3260; suzanne.sprague@cmegroup.com) or Bryan McBlaine (312-338-2469; bryan.mcblaine@cmegroup.com).

*Eligible clearing members will receive invitations to participate in the committed credit facility during the annual renewal process during the second half of each calendar year.

Review of Collateral Haircuts Advisory

In conjunction with the regular review of market volatility to ensure adequate collateral coverage, please find details here regarding the current acceptable collateral and haircuts for CME Clearing.

Product Modification: Extend the listing of the U.S. Midwest Hot-Rolled Coil Steel Futures (HR) – October 19, 2014

Effective Sunday, October 19, 2014 for trade date Monday, October 20, 2014, and pending all relevant CFTC regulatory review periods, please be advised that the New York Mercantile Exchange (EXCHANGE) will expand the listing of contract months for the product listed here on CME Globex and available for submission for clearing on CME ClearPort.

Feedback Requested on System Information

CME Group would like to hear about your experience using our client systems development and user resources. Please complete a short survey for the following:

·         Client Systems Wiki

·         WebHelp systems

·         Videos

Your valuable input will help identify areas for future enhancement or improvement.

Complete the User Feedback Survey

Contact Information