User Help System

 

 

FX Prime Broker and Direct Participant Quick Start

The following guide is an overview of the FX Link / Spot FX onboarding and setup process; using Account Management Service / Entity Risk Management functions.

Spot FX Credit Limits are managed via CME Account Management Service (AMS), which supports:

  • Limit setting at the product (currency pair) level
  • Real time enforcement of updated credit limits
  • Monitoring of credit limit utilization by product (currency pair)
  • Ability to suspend new order entry with one click
  • Resting orders can also be cancelled by calling CME’s Global Command Center.
  • Email alerts based on configurable threshold levels
  • Cross product (currency pair) aggregate exposure monitoring
  • Aggregated view of limits and exposure across products for reference

Spot FX Onboarding and Registration

Complete Onboarding Forms

  • Primary FX Firm Authorization: Used by the Primary FX Firm officer to authorize CME to generate a Spot FX Firm Number to create a relationship between the Primary FX Firm and a Spot FX Firm (Permitted Users and / or Direct Participant), as a credit counterparty for Spot FX Transactions that result from Spot FX Basis Trades.
  • Spot FX In-line credit controls access request: Request credit administrator application user entitlement.

Prior to setup, users must have an active CME Group Login.

To register a CME Group Login, go to: https://login.cmegroup.com/sso/register/.

  • Mapping Spot FX Firm to CME Globex execution firms: Spot FX firms will be available once the onboarding is complete. Designate associations between Spot FX Firm(s) and Executing Firm(s).

Note: Not required if the firm is registered for CME ClearPort or STP

CME FX Link Counterparty Registration

  • Set up Trading Firm(s): Request allocation of Spot FX credit limits to the registered firm for submitted Spot FX Basis Trades.

Note: Not required if the firm is registered for CME ClearPort or STP

Account Management Service / Entity Risk Management Setup

To setup and enable a Spot FX account:

  1. Link Trading Firms and Accounts
  1. Set Trading Firm Limits
  1. Create a Spot FX account and associate execution firms

Linking Accounts to Trading Firms

  • To Link Trading Firms:
  1. From the Entity Risk Management menu, select Spot FX.
  2. From the Spot FX page, select the Prime Broker Firm to view / manage.

If you are entitled for one Spot FX firm, it is automatically selected.

  1. In the Link a Trading Firm field select / link a trading firm, then select Link.

As you type, trading firms appear in a list; select from available options.

A confirmation message indicates successful linking and the Trading firm is added to the list of linked firms.

  1. Select the newly created Trading Firm.
  2. From the Execution Firm pane, select Edit, then specify Execution Firm(s) to link, then select Save.

  1. From the Trading Firm Limits panes specify: 
  • Execution Firm

  • Thresholds and Alerts: Set email alerts when an account uses a select percentage of its limit thresholds (50% to 100%) and up to 20 email recipients.

  • Spot FX Firm Limits (in USD thousands)

  1. To finalize, select Save.

Setting Trading Firm Limits

  • To Link Trading Firms:
  1. From the Entity Risk Management menu, select Spot FX.

  1. On the Spot FX page, select the Spot FX firm to manage.
  1. Select the Trading Firm to manage.

  1. From the Trading Firm Limits pane, select Edit, then specify the Reference Limit and Spot FX Trading Firm Limits (in USD thousands).

  1. To finalize, select Save.

Creating a Spot FX account

Following Trading and Execution Firm setup, before the entity is authorized to submit orders; go to Account Management Service to create an account that is associated with the Execution Firm.

The following instructions illustrate the process to create a clearing account, entitled for Inline Credit Controls (ICC) and used for Spot FX.

After creating a ICC enabled account, Spot FX require a Central FX Prime Broker to use Entity Risk Manager to associate (link) a trading firm with the CME Globex Executing firm(s).

  • To Enter Account Settings and Services
  1. From Account Management Service, perform an account search.

If the account doesn't exist, select Create New.

  1. On the page that appears, enter Clearing Account Settings.

Available options and required details are dependent on selected clearing firm and options.

Required fields are indicated by a red asterisk (*).

Example: ICC (CME Globex) and Spot FX enabled accounts do not require Market / Product / Broker permissions.

Clearing Account Settings

  • Clearing member* ClosedIf an authorized Spot FX Prime Broker Firm is selected, the field name also updates. Prime Broker firms assume financial and performance responsibility for all transactions executed through them and cleared by CME Clearing whether it is for the account of a customer, member, or their own account.
  • Account Number*Closed The unique alphanumeric identifier for accounts; up to 12 characters.
    Do not use special characters (%, &, $, #, !, +, *) in the first, or second position.
  • Description*Closed User specified identification details.
  • Owner Firm*Closed The Trading firm owner of this account. Available if the clearing account is designated as Delegated Intermediary (DI); specify by the clearing member firm. Additional details are inherited from Trading Account Owner.
    DI (parent) accounts cannot be updated via Bulk upload.
    : Select the associated Spot FX Trading Firm, which will be linked from Entity Risk Management - Spot FX (FX Link) .
  • Asset Manager (Controller) FirmClosed Enter the name in the field; available choices appear based on the partially entered name.
    For DI and sub-accounts: If an asset manager firm is assigned to the clearing account, trading sub-accounts cannot be created and the DI selection will not be available.
  • House / Customer Indicator*Closed Indicates whether the account represents customer segregated funds or house funds.: Select House.
  • CTI Code*Closed CTI1 - An individual member trading for her or her own account, CTI2 - A member firm trading for its proprietary account, CTI3 - A member firm trading for another member, CTI4 - All others individuals.
  • Portfolio Margin FuturesClosed Enables the account for the CME Portfolio Margining program for futures.
  • Delegated Intermediary (DI)Closed Specified by the clearing member firm administrator.
  • Margin Account: For CME ClearPort, this enables multiple customer accounts to aggregate trades for cross-account margin offsets for OTC trades.

To assign accounts to a margin account, ensure that:

  • Accounts are associated with the same Clearing Member Firm, beneficial owner.
  • CME ClearPort service is enabled for the accounts.

For non CME ClearPort accounts, the margin account is Self, which assigns the same account number as the owner.

Spot FX

  1. From the Services pane (also known as Platform), select ICC (CME Globex).

  1. Specify Execution Firm(s)* details.

As you type, matching execution firms appear in a list; select to add.

  1. Select Create, then specify whether to create as Active or InactiveClosedExample: To configure or modify settings at a later time.

  1. To complete account creation and activation, view Entity Risk Management - Spot FX instructions to view details on linking Trading Firms and setting Spot FX Credit Controls (via ICC).

Additional Functions

Account Management Service
  • Suspending Execution Firm Order Entry: Authorized FX PB administrative users can suspend new order entry for an Execution Firm; directly from the ICC (CME Globex) tab.

Using Account Management Service, perform an account search, then go to the Services - ICC (CME Globex) pane.

Entity Risk Management

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