Topics in this issue include:

      System Updates

·         NEW: IRS Production Advisory for USD Data Refresh

·         NEW: CDS Production Advisory - New CME CDS Margin Model Release into Production

·         NEW: Addition of the CME Account Alias to Clearing Confirm Messages

·         CME Secured FTP Availability

·         CME Public FTP and Secured FTP Availability

      Deliveries

·         CME Group Delivery Dates for December 2014

·         NEW: USD and EUR Interest Rate Swap Futures - Delivery Process, December 2014

·         NEW: Alternative Notice of Intention to Deliver (ANID)

·         2014 Approved List of Live Cattle Stockyards & Slaughter Plants

      Events & Announcements

·         NEW: BPS™ IRS Form 1099 Notification #2

·         November 2014 Eligible ETFs and Stocks

·         Treasury Invoice Swaps Launch on December 15, 2014

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

·         Contact Information

Deliveries

CME Group Delivery Dates for December 2014

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

NEW: USD and EUR Interest Rate Swap Futures - Delivery Process, December 2014

Please be advised that the delivery process and schedule at this link will be in effect for the December 2014 delivery cycle. All times are Central Standard Time unless otherwise noted.

NEW: Alternative Notice of Intention to Deliver (ANID)

Please be advised, effective, Tuesday, December 2, 2014, and pending all relevant CFTC regulatory review periods the Alternative Delivery Procedure (ADP) has been streamlined and expanded to all physically delivered products. Clearing firms entering into an ADP pursuant to Rule 771 must submit to CME Clearing an Alternative Notice of Intention to Deliver (ANID) form signed by both clearing firms agreeing to an ADP. The forms must be sent to CME Clearing no later than 5 PM CST the business day the Clearing House is notified of the agreement. To obtain a copy of the ANID form, please send an email to Clearinghousedelivteam@cmegroup.com.

As a reminder, any clearing firm entering into an ADP, pursuant to Rule 771, agrees to make or take delivery of contracts under terms and conditions other than the delivery rules of the CME, CBOT, NYMEX or COMEX rulebooks. Clearing firms entering into the ADP releases and indemnifies the Exchange against any liability, cost or expense the Exchange may incur for any reason as a result of the execution, delivery, or performance of such contracts or such agreement, or any breach thereof or any obligation to ensure financial performance under Rule 702. Clearing firms shall not be released of their respective obligations as the seller or the buyer of the Exchange contracts until the Exchange has received the signed ANID form.

If there are any further questions or concerns, please contact Deliveries at 312.930.3172.

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: BPS™ IRS Form 1099 Notification #2

November 28, 2014 marks the end of the 2014 BPS tax year for brokerage. Please click here for the 1099 processing schedule that will be effective for the 2014 tax year.

November 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 (CMF). 

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

Treasury Invoice Swaps Launch on December 15, 2014

Effective Sunday, December 14, 2014, for first trade date of Monday, December 15, 2014, CBOT shall begin to offer trading in new interest rate swap products called Treasury Invoice Swaps pending all relevant CFTC Regulatory review periods. These swaps shall be listed for trading solely in the form of inter-commodity spreads, known as invoice spreads, consisting of the simultaneous execution of a Treasury invoice swap and the corresponding related CBOT Treasury futures contract. Treasury Invoice Swaps will be available for trading on CME Globex, and additionally market participants may notify CBOT of block transactions in such invoice spreads via CME ClearPort.

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.

Contact Information