• Revisions to CME/CBOT/NYMEX/COMEX Rule 561 (“Reports of Large Positions”)

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-6398
      • Notice Date
      • 21 September 2012
      • Effective Date
      • 08 October 2012
    • Pending all relevant regulatory review periods, effective October 8, 2012, the Exchanges will adopt revisions to Rule 561 (“Reports of Large Submissions”).  The revisions harmonize the filing time requirements in the rule concerning CFTC Form 102 (“Identification of Special Accounts”) with the provisions of CFTC Regulation 17.02(b)(2).  Additionally, the Exchanges are adopting a provision in Rule 561 that provides the Market Regulation Department with the authority to require market participants to submit a new Form 102 on a biennial basis for the maintenance of accurate records.
       
      Rule 561 currently requires that Form 102 be submitted to the Market Regulation Department by clearing member firms, omnibus accounts and foreign brokers no later than the business day following the date on which the account becomes reportable.  Given that CFTC Regulation 17.02(b)(2) allows for a completed Form 102 to be submitted within three business days of the day that the account is first reported to the CFTC, we are modifying Rule 561 to mirror the existing Federal regulation.  In order to ensure that the Market Regulation Department can obtain certain information with respect to the reportable account on an as-needed basis earlier than the three business-day period, we are also adopting a requirement that clearing members, omnibus accounts and foreign brokers must submit the account type, reportable account number and names and addresses of the owners and controllers of the account on the first day that the account becomes reportable if so directed by the Market Regulation Department. 
       
      The revisions to Rule 561 are set forth below, with additions underscored and deletions overstruck.
       
      If you have any questions concerning this matter, please contact Sandra Valtierra, Manager, Market Regulation Department, at 312.347.4137 or Bill Kokontis, Senior Director, Market Regulation Department, at 312.435.3665.
       
      For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312.930.3434 or news@cmegroup.com.
       
      561.A.            General Provisions
      Clearing members, omnibus accounts and foreign brokers shall submit to the Exchange a daily report of all positions required to be reported as set forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations Section at the end of Chapter 5.  Positions at or above the reportable level in a particular expiration month of a futures contract or in all puts or in all calls of a particular option contract expiration month trigger reportable status.  For a person in reportable status in a particular contract, all positions, regardless of size, in any futures contract month and in any put or call on that futures contract must be reported.
      Additionally, the daily Large Trader submission to the Exchange must include for each reportable account 1) the EFRP volume bought and sold in the reportable instrument, by contract month, and for EOOs by put and call strike and 2) the number of delivery notices issued and the number of deliveries stopped in the reportable instrument.
      Failure by an omnibus account or foreign broker to submit required information may result in a hearing by the Business Conduct Committee and result in limitations, conditions or denial of access of such omnibus account or foreign broker to any Exchange market.  Notwithstanding the above, clearing members carrying such accounts remain responsible for obtaining and providing to the Exchange information regarding the ownership and control of positions in circumstances where an omnibus account or foreign broker has failed to provide the information to the Exchange.
      All large trader reports shall be submitted in a form acceptable to the Market Regulation Department. The Exchange may require that more than one large trader report be submitted daily.  The Business Conduct Committee or the Market Regulation Department may require reports from any clearing member, omnibus account or foreign broker on a lesser number of positions than reflected in the Position Limit, Position Accountability and Reportable Level Table.
      Clearing members, omnibus accounts and foreign brokers must provide the Market Regulation Department with the required CFTC Form 102 (“Identification of Special Accounts”) accurately identifying the owners, any controllersing parties, controlled accountsand any additional informationrequired information for each reportable account within three Business Days of the first day that the account in question becomes reportable.  Notwithstanding the three Business Day requirement, on the first day that an account becomes reportable, clearing members, omnibus accounts and foreign brokers must, at the direction of the Market Regulation Department, submit the following information: account type, reportable account number and names and addresses of the owners and controllers of the account. The form must be submitted to the Market Regulation Department no later than the business day following the date on which the account becomes reportable. 
      Additionally, aAny material changes to the information previously provided to the Market Regulation Department will require the submission of a revised form within three Bbusiness Ddays of such changes becoming effective.  Additionally, in the absence of any material changes, the Market Regulation Department may require the submission of a new form on a biennial basis for the maintenance of accurate records.
      561.B.                            Reportable Levels
      The reportable levels for all contracts are set forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations Section at the end of Chapter 5.  

CME Group is the world’s leading 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.

© 2024 CME Group Inc. All rights reserved.