• CME Globex Notices: December 29, 2008

      • To
      • CME Globex Customers
      • From
      • CME Globex Account Management
      • #
      • 20081229
      • Notice Date
      • 29 December 2008
    • Topics in this issue include:
      Critical System Updates
      New Functionality
      Product Launches
      Product Changes
      Critical System Updates

      iLink and FIX/FAST Message Enhancements
      Effective Sunday, February 1, 2009, CME Group is launching a number of messaging enhancements to both iLink order entry and FIX/FAST market data. These enhancements include new tags to provide additional order information, and changes to existing tags to make inbound and outbound messaging more FIX-compliant and consistent.

      Certification is not required for these iLink or Market Data Platform FIX/FAST enhancements. Complete testing in the iLink test suite of AutoCert is strongly recommended.

      Complete information on these messaging enhancements is detailed in the   FIX/FAST and iLink Message Enhancements Client Impact Assessment.

      These messaging enhancements are currently available for customer testing in New Release.

      New Functionality

      FX Futures Enhancements
      Effective Sunday, February 8, 2009 (trade date Monday, February 9), a number of enhancements will be introduced for FX futures and future spreads on CME Globex. The messaging and functionality impacts are documented  online.

      This launch will also result in significantly reduced message response times. Already among the fastest in the industry, this upgrade is expected to reduce response times by an average of 40-50%.

      As a result of the reduced message response times, bandwidth utilization in these futures markets is expected to ultimately increase by as much as 20%.

      Please note: all Good ‘Till Cancel (GTC) and Good ‘Till Date (GTD) orders will be deleted from CME Globex prior to the open on February 8. To allow customers a chance to re-enter GTC and GTD orders, the FX futures markets will pre-open early on Sunday, February 8, at 3:00 p.m. Central time.

      We recommend all system providers supporting FX futures test these changes thoroughly in New Release. These enhancements are currently available in New Release for customer testing.

      Product Launches

      Hardwood Pulp Futures and Options
      Effective Sunday, January 11, 2009 (trade date Monday, January 12), Hardwood Pulp futures and options will be available for trading on the CME Globex platform. Full User-Defined Spreads functionality will be available upon launch for Hardwood Pulp options.

      These contracts are designed to help pulp and paper producers manage risk. Hardwood Pulp futures and options provide a way to:

      • Trade cash-settled contracts based on the FOEX PIX BHKP Europe Index
      • Reduce counterparty risk with safety and security of CME Clearing
      • Trade virtually 24 hours a day on CME Globex

      Hardwood Pulp Futures and Options

      Product Symbol SecurityGroup SecuritySubType
      Hardwood Pulp futures HD HWP
      Hardwood Pulp futures calendar spreads SP
      Hardwood Pulp options H3
      Hardwood Pulp options verticals H4 VT

      These new futures and options are currently available for customer testing in the New Release environment.

      DME Products and Mock Trading Session
      The DME Oman Crude Oil and Oman Crude Oil Financial futures and future spreads are now available for customer testing in the CME Globex New Release environment.

      CME Globex product specifications are available  online now. These products will be listed with implied functionality turned on. Complete product specs, including trading hours, are available on the  DME web site.

      A mock trading session in the CME Globex production environment will be held Saturday, January 24. Detailed information on the session is published in the  DME Mock Trading Script.

      DME products are scheduled to launch for trading electronically exclusively on the CME Globex platform effective Monday, February 2, 2009, subject to final DME board approval of the definitive agreement. The arrangement remains subject to negotiation of definitive documents and obtaining all necessary regulatory approvals.

      Please note: all currently connected customers may begin front-end testing with these new instruments upon New Release launch. However, to complete end-to-end testing through clearing, customers must be permissioned to trade DME products via the CME Connection Agreement Schedule 6, Clearing Firm Guarantee. The Schedule 6 is available at  www.cmegroup.com/connectionagreement.

      Turkish Lira Futures
      Effective Sunday, January 25, 2009 (trade date Monday, January 26), Turkish Lira futures will be launched on the CME Globex platform, denominated in both U.S. dollars (USD/TRY) as well as euros (EUR/TRY).

      Turkish lira pricing is typically not as tightly arbitraged as other currencies, and as such can present opportunities for profit. Since the introduction of the New Turkish Lira in 2004, the lira has seen unprecedented growth, even rising against the U.S. dollar and euro in recent years. With a growing industrial sector, Turkey has been repeatedly cited as a country with an emerging market for upcoming years.

      USD/TRY and EUR/TRY Futures

      Product Symbol SecurityGroup SecuritySubType
      USD/TRY futures CZ TRY
      USD/TRY futures calendar spreads FX
      EUR/TRY futures TRE
      EUR/TRY futures calendar spreads FX

      These products will be available for customer testing in the New Release environment Monday, January 12.

      Product Changes

      NEW Equity Futures Price Limit Rules Modifications
      On Sunday, January 11, 2009, CME Group will modify the rules regarding the 5 percent overnight price limits for U.S. equity index futures traded on CME Globex during the Electronic Trading Hours (ETH). These modifications are designed to help preserve the market's ability to provide price discovery prior to the opening of the underlying cash market in all market conditions, without requiring a change in the overnight price limit.

      Currently, if the 5 percent overnight limit is reached during the ETH session, and the market remains locked-limited until the opening of the Regular Trading Hours (RTH) session, the market's capability to provide price discovery before the opening of the underlying cash market is negated.

      Starting Sunday, January 11, 2009, however, if the market is locked-limited as of 8:15 a.m. Central time (15 minutes prior to the start of the RTH session) and still remains so at 8:25 a.m. (5 minutes prior to the start of the RTH session), the market will be halted and put into pre-open state. This will provide an Indicative Opening Price (IOP) in anticipation of a re-open on RTH, with the RTH limits in place – and effectively re-establish the market's price discovery capability.

      Which Products Are Affected?

      • This rule change applies to all legacy CME and CBOT equity index futures on U.S. stock indexes, including contracts based on:
      • S&P 500
      • S&P MidCap 400
      • S&P SmallCap 600
      • S&P 500/Citigroup Growth
      • S&P 500/Citigroup Value
      • SPCTRS
      • NASDAQ-100
      • NASDAQ Composite
      • NASDAQ Biotechnology
      • Dow Jones Industrial Average
      • Dow Jones U.S. Real Estate
      • Contracts on non-U.S. indexes are not affected by this change
      • Contracts that do not trade on CME Globex during the ETH sessions will not be affected

      More information is available in the  Equity Index Price Limits Guide and FAQ, or contact the  Equity Products team.

      NYMEX and COMEX Options Strategies
      Effective Sunday, January 11, 2009, all exchange-defined strategies for NYMEX and COMEX options contracts will be removed from the CME Globex platform.

      Full User-Defined Spreads functionality will continue to be available, including the ability to create custom options-only Combos and options-and-futures Covereds.

      All exchanged-defined options strategies for NYMEX and COMEX have been removed from New Release.

      FX Futures Schedule Change
      Effective Sunday, February 8, 2009 (trade date Monday, February 9), at customers’ request, the Sunday open for all FX futures and future spreads on CME Globex will be updated. FX futures markets will open on Sunday at 5:00 p.m. Central time (CT). Currently, these markets open at 3:00 p.m. CT.