Operator ID (“Tag 50 ID”) Required on All CME Globex Orders

The requirements of Rule 576 (“Identification of Globex Terminal Operators”) are identical across the four CME Group exchanges: CME, CBOT, NYMEX and COMEX.  Rule 576 requires that each order entered into CME Globex include the submission of an operator ID, also referred to as the “Tag 50 ID” or “User ID”, which is unique to the party who entered the order.  For orders entered manually, the Tag 50 ID must be unique to the individual entering the order into CME Globex.  For orders entered by an automated trading system (“ATS”), the Tag 50 ID must be unique to the person, or the identified team of persons on the same shift, who are responsible for the operation of the ATS.  All Tag 50 IDs must be unique at the level of the clearing member firm. The text of Rule 576 appears below.

576.      IDENTIFICATION OF GLOBEX TERMINAL OPERATORS

Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

CME Group Market Regulation Advisory Notice RA0908-5 from September 10, 2009, provides additional details on compliance with Rule 576 including information on when registration of a Tag 50 ID is required in the Exchange Fee System (“Fee System”).  RA0908-5 can be accessed via the following link: http://www.cmegroup.com/rulebook/files/CME_Group_RA0908-5.pdf

Correct Tag 50 IDs must be submitted on all orders, regardless of whether registration of the Tag 50 ID is also required in the Exchange Fee System.  Clearing member firms must ensure that:

• all clients executing through the clearing firm, including those clients with direct connections to CME Globex, are fully aware of the Tag 50 ID submission requirements;
• each Tag 50 ID is unique at the clearing member firm;
• the correct Tag 50 ID is submitted on each order entered into CME Globex and accurately transmitted to the clearing member firm and to the exchanges, as described in the above-referenced CME Group Market Regulation Advisory Notice RA 0908-5; and
• where required, Tag 50 IDs are appropriately and accurately registered in the Exchange Fee System.

Failure to comply with the requirements of Rule 576 will result in disciplinary action.

Questions regarding this advisory may be directed to the following individuals in Market Regulation:

Jim Moran, Director, at 312.435.3671

Lou Abarcar, Associate Director, at 312.341.3236

Terry Quinn, Manager, 312.435.3753

For media inquiries concerning this Advisory Notice, please contact CME Group Corporate Communications at 312.930.3434 or news@cmegroup.com.