CME Clearing Notice: Week of Monday, April 13, 2015

- To
- Clearing Member Firms
- From
- CME Clearing
- #
- 15-107
- Notice Date
- 16 April 2015
- Effective Date
- 16 April 2015

Topics in this issue include:

· NEW: Update II: CME SFTP Enhancements Effective May 9, 2015

· SMART Click Migration: Asset Management and Settlement - April 13, 2015

· UPDATED SMART Click Migration: Deal Management System (DMS)

· New June 26 Date for Submission of Additional Client Master Data

Deliveries

· CME Group Delivery Dates for April 2015

Events & Announcements

· April 2015 Eligible ETFs and Stocks

· Review of Collateral Haircuts Advisory

· Monthly-to-Daily Conversion for Power Contracts begins on May 29, 2015

· Contact Information

System Updates

NEW: Update II: CME SFTP Enhancements Effective May 9, 2015

CME plans to install a software update to CME Secure SFTP on Saturday, May 9, 2015. With this enhancement, CME will no longer support “Open SSH public key format” that is currently used by some of clearing firms to connect to CME SFTP. Instead CME will now support “SSH Public Key File Format (RFC4716)” effective May 9, 2015.

To help SFTP customers with this enhancement, CME will conduct a final testing in production on Saturday, May 9. Please note: all firms that utilize public key to access CME SFTP are required to participate in Production testing on May 9th. If you do not participate in this testing, you will risk your firms’ ability to access CME SFTP following the upgrade.

This change will impact connectivity to the following CME SFTP sites:

Internet based “sftpng.cmegroup.com” IP: 164.74.122.33.
WAN connection to IP: 167.204.41.33.

To help with this enhancement, CME will convert the majority of the Open SSH Public Keys to SSH Public Key File Format RFC4716. Some customers with special public keys will need to convert their current production keys to RFC4716 format. CME is directly reaching out to those customers and providing them with key conversion instructions.

Firms can test this enhancement now by connecting to the CME Test SFTP site. Below please find the site information and testing procedure:

Internet based site address: sftpcert.cmegroup.com;
Web based site IP address: 164.74.123.120.
Public keys are copied from Production to the testing site expect the special public keys which require firms to convert them.
Firms can connect using their public keys and using the same credentials currently used for Production SFTP site.
Firms can send test date files into the Incoming folder.
Or Download test file “CME.Cipher.Test.xml” from the Outgoing folder.
When the user is able to access their SFTP account, upload or download the test file, then testing is successful.

Please note the following regarding the Test SFTP site.

Some firms who access the site for the first time might be required to add the site DNS and IP address into their firewall.
Other firms who rely on the DNS name only for the SFTP site, may access the site without the need to add the site IP address to their firewall.
CME doesn’t require adding the firms’ source address information for this site.

Mock Testing in Production on May 9:

We encourage all firms to participate in this final testing their connectivity in production on May 9.
Customers utilize Public Key are required to participate in the testing since they are impacted the most by this enhancement.
To test this enhancement, firms are encouraged to execute some of their upload or download jobs as they do in production.
Any data files submitted to CME SFTP will be deleted. Similarly, firms are expected to delete any data files downloaded as part of this testing.
Testing window is between 8:00 AM to 12:00 Noon CST.
If you are interested in testing in Production on May 9, please let us know by sending an email to ccs@cmegroup.com.

For more information please contact CME Clearing at (312) 207-2525.

SMART Click Migration: Asset Management and Settlement - April 13, 2015

Over the past few months, CME has begun rolling out SMART Click – our new and simpler method to access all CME Group online applications.

Beginning on Monday, April 13, you can begin using SMART Click for Asset Management and Settlement.

The new single login address to remember is https://login.cmegroup.com. Below is the simple process to maintain your access to Asset Management and Settlement:

1. Register for a SMART Click ID at https://login.cmegroup.com

2. Activate your SMART Click

3. Beginning on April 13, 2015, Claim & Link your Legacy ID to your SMART Click ID: Log in at https://login.cmegroup.com and clicking on the Asset Management and Settlement applications under the Post Trade tab.

Here is the link to the SMART Click FAQ document for a more detailed overview of the process: http://www.cmegroup.com/clearing/files/cme-smartclick-claim-faq.pdf

Please be aware that after June 12 SMART Click ID use for Asset Management & Settlement will be mandatory and legacy IDs will no longer be valid.

SMART Click Migration Coming Soon for these applications (tentative dates):

5/29 – EREP
6/5 – Deliveries Plus & Positions
6/26 – FEC & FEC+

For SMART Click support, troubleshooting or if you miss the claim deadline, contact Enterprise Application & System Entitlements (EASE) using one of the following:

• Phone: 312.456.1560 (United States)

• Phone: +44 203.379.3802 (Europe)

• Phone: +65 6593.5536 (Asia)

• Email: EASE_Clearing_Application_Request@cmegroup.com

UPDATED SMART Click Migration: Deal Management System (DMS)

Attention Deal Management System (DMS) Users:

Effective the evening of March 7, 2015, the Deal Management System (DMS) will transition to SMART Click. SMART Click is a secure web-based interface that can be used by customers to manage profile and user ID information.

Here are the steps required to maintain access:

1. Register for a SMART Click ID at www.cmegroup.com/smartclick

2. Activate your SMART Click ID

3. Beginning on March 7, 2015, Claim & Link your Legacy ID to your SMART Click ID: https://dms.cmegroup.com/

Please be aware, after April 30, 2015 you must use your SMART Click ID.

Additionally, DMS-New Release is now Smart Click ready.

For SMART Click support, troubleshooting or if you miss the claim deadline, contact Enterprise Application & System Entitlements (EASE) using one of the following:

· Phone: 312.456.1560 (United States)

· Phone: +44 203.379.3802 (Europe)

· Phone: +65 6593.5536 (Asia)

· Email: EASE_Clearing_Application_Request@cmegroup.com

New June 26 Date for Submission of Additional Client Master Data

In March of 2014, CME Clearing published Clearing Advisory 14-127, which required that firms begin submitting certain additional client master data for risk management purposes in the normal course of business and to assist with default management. For futures accounts, firms may submit this data either by including it in the Customer Gross Margining (CGM) position file or by submitting a separate Margin Accounts Master file. For swaps accounts, firms may submit this data either by including it in the LSOC Collateral Value Report (CVR) files or by submitting the separate Margin Accounts Master file.

CME Clearing is now establishing a final date by which firms must begin submitting the additional client master data: Friday, June 26, 2015. The final date should give firms plenty of time to install updated code, etc. Firms that are not yet submitting the additional data may begin doing so at any time.

For further details, please click here.

Deliveries

CME Group Delivery Dates for April 2015

Listed in the linked advisory are the relevant delivery dates for April 2015 Chicago Mercantile Exchange Inc., Chicago Board of Trade, NYMEX, COMEX, and DME contracts.

If you have any questions, please contact CME Clearing Deliveries at (312) 930-3172 or clearinghousedelivteam@cmegroup.com.

Events & Announcements

April 2015 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.

Tiering	Average Daily Volume Over Last 30 Days	Eligible Shares Per CMF
Tier 1	Greater than 10,000,000	1,000,000
Tier 2	5,000,001 - 10,000,000	500,000
Tier 3	2,500,001 - 5,000,000	250,000
Tier 4	1,000,001 - 2,500,000	100,000
Tier 5	500,000 - 1,000,000	50,000
Not eligible	Less than 500,000	None

CME Clearing utilizes the Depository Trust & Clearing Corporation (DTCC) as the custodian for the ETF and Stock Programs. In order to participate in the programs, clearing members must have an account at DTCC. For those firms familiar with the DTCC system, the CME’s account has “Repo” status.

Clearing members with an account at DTCC can originate free pledges of securities to the CME account or request the release of pledged securities from the account at the CME. CME staff has direct access to DTCC’s system to view clearing member pledges and approve release requests. Release transactions are not finalized until CME has approved the transactions. Clearing members have the opportunity to pledge securities in the morning to facilitate the release of a.m. cash calls at the intra-day performance bond cycle, or to request the release of pledged securities. The deadline for morning transactions is 10:30 a.m. CST. Clearing members have an additional opportunity to pledge securities in anticipation of increases in their overnight performance bond requirements until approximately 1:30 p.m. CST.

If you need further information about the ETF and Stock Programs, please contact the Financial Unit at (312) 207-2594 or the Risk Management Group at (312) 648-3888.

Review of Collateral Haircuts Advisory

In conjunction with the regular review of market volatility to ensure adequate collateral coverage, please find at this link the current acceptable collateral and haircuts for CME Clearing. Please note that the changes column identified below indicates any near term changes to collateral and haircuts. All assets that are utilized to meet PB requirements in different currencies will be subject to an additional cross-currency haircut. For applicable haircuts and more details, please see the CME cross-currency haircut file and the CME Financial and Collateral Management page. Should you have any questions, please contact the Risk Management department at 312-648-3888 or the Financial Management group at 312-207-2594.

Monthly-to-Daily Conversion for Power Contracts begins on May 29, 2015

Beginning with the June 2015 contract month and pending regulatory approvals, we are introducing an important enhancement in the way that the majority of monthly NYMEX power contracts are processed at maturity. Please see Special Executive Report 7253RR at: http://www.cmegroup.com/tools-information/lookups/advisories/ser/files/SER-7253RR.pdf

Currently, the last day of trading for these monthly cash-settled contracts is the last business day of the contract month. With this change, the monthly contracts will terminate trading prior to the start of the contract month and positions in the monthly contracts will be transformed automatically into strips of positions in the corresponding daily contracts, thereby allowing individual daily positions to be managed separately.

For questions or further information, please contact CME Clearing Services (CCS) at 312-207-2525 or ccs@cmegroup.com.

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

Contact Information

CME Group Contacts
General Information	Products & Services	(312) 930-8213
General Information	Clearing House	(312) 207-2525
Global Command Center	U.S.	(800) 438-8616
	Europe	+0800 898 013
	Asia	+65 6532 5010
Performance Bond Information	Risk Management Dept.	(312) 648-3888
Position Limits	Market Regulation	(312) 341-7970
Clearing Fees	Clearing Fee Hotline	(312) 648-5470
Risk Management	Risk Management Hotline	(312) 634-3888
Collateral	Financial Unit Hotline	(312) 207-2594
Deliveries	Deliveries Unit	(312) 930-3172
Clearing Customer Service		(312) 207-2525

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CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.