Topics in this issue include:

      System Updates

·         NEW: CDS Production Advisory – New CME CDS Margin Model Release Deployment Delay

·         NEW: CME Secured FTP Availability

·         NEW: Saturday December 20, 2014 Firm MQ and SFTP Test

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

·         NEW: USD Data Refresh Postponed

      Deliveries

·         NEW: December 2014 Eligible ETFs and Stocks

·         CME Group Delivery Dates for December 2014

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

·         2014 Approved List of Live Cattle Stockyards & Slaughter Plants

      Events & Announcements

·         NEW: Product Modification: Suppression of previously listed contract months for a Gasoil Futures on NYMEX

·         BPS™ IRS Form 1099 Notification #2

·         Treasury Invoice Swaps Launch on December 15, 2014

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

·         Contact Information

Deliveries

NEW: December 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. 

See the full advisory.

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.

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.

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: Product Modification: Suppression of previously listed contract months for a Gasoil Futures on NYMEX

After the close of business on Friday, December 5, 2014 the New York Mercantile Exchange, Inc. (NYMEX or EXCHANGE) is removing listed contract months from a Gasoil product. The table below displays the last listed contract as of December 5, 2014. The products are currently listed on CME Globex, Open Outcry and available for submission for clearing on CME ClearPort. 

See the full advisory.

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.

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