CME Globex ICC Product Restriction Policy

Using the CME Globex ICC Product Restriction Policy authorized clearing firm administrators can:

• View a list of restricted products, including execution firms restricted from submitting orders for the listed product.
• Restrict the ability for execution firms to submit trades for a selected product, including restricting a product for all execution firms.
• Manage execution firm access to trade swap-based event contracts.
• View Event Swap Restrictions: View a list of event swap product restrictions as a reference. To manage order entry permissions, use the CME Globex ICC Policy function.
• Remove non-zero limits for restricted products.
• Using the download/upload function to restrict multiple execution firms from submitting trades for multiple products.
• Download accounts: View accounts and product limit details as a spreadsheet.

Note: The product restriction policy does not apply to Mass Quote messages.
ICC Product Restrictions apply to new orders, order modifications, requests for quote, and cross orders.

• To manage execution firm / product restrictions:

1. Select the Policy & Threshold menu, then select CME Globex ICC Product Restriction Policy.

 

2. Find a particular product or firm, by selecting the Clearing Member (automatically selected for users with access to one firm), Product, Search fields.

Restricted products appear in a list, with the execution firms that have been restricted.

3. To view and manage restrictions for additional products, select show all products.

4. To manage product restrictions (a, b) or account limits (c), select the blue linked product.

Note: Event Swap products are available for view-only. To manage order entry permissions, use the CME Globex ICC Policy function.

5. Select Edit then:

1. Restrict Product: Restrict the ability to submit trades. Also restricts unregistered execution firm accounts from submitting orders.
2. Remove non-zero limits: To restrict accounts with specific product limits to submit orders, select this checkbox.

For a given execution firm, individual product limits will be set to zero; restricting the ability to submit trades.

Event Swap Products are not available to manage with Product Restriction Policy functions. To manage execution firm order entry permissions, use the CME Globex ICC Policy function.

3. Download acounts with limits: For a given Clearing Member firm, download a spreadsheet of all ICC accounts with individually specified product limits.

6. To finalize, select Save.

• To Restrict multiple execution firms / products via upload:

1. Select the Policy & Threshold menu, then select CME Globex ICC Product Restriction Policy.

2. Find a particular product or firm, by selecting the Clearing Member (automatically selected for users with access to one firm),

Restricted products and restricted execution firms, appears as a list.

3. Select (download) Product Restrictions by Execution Firm.

4. On the dialog that appears, select an Execution Firm to restrict, then select Download.

A MS Excel file is downloaded to the default browser folder (e.g. This PC > Downloads).

The file contains a list of eligible products for the selected Execution Firm.

5. Open the downloaded MS Excel spreadsheet, then update:

• ACTION: Mark updated rows with "X".

The system processes only marked rows.

• RESTRICTED: Mark updated rows with "Y".

The system processes only marked rows.

Marking (RESTRICTED column) rows with "N" will remove restrictions and allow the product to be traded.

• CLEARING_FIRM: update if applicable
• CLEARING_MEMBER_FIRM_ID: update if applicable
• EXECUTION_FIRM_ID: If applicable. Enter the Execution Firm(s) to restrict.

For the selected Clearing Firm, additional Execution Firm(s) and products can be entered.

Example: The following example illustrates example clearing firm 000, execution firm 444 AND 555 with restrictions for Product 00C -
Test Corn Futures

Ensure the products to be restricted are designated before uploading:

• PRODUCT_SYMBOL
• PRODUCT_TYPE
• PRODUCT_EXCHANGE
• PRODUCT_LONG_NAME

6. Select (upload) Restrict Products by Execution Firm.

On the dialog that appears, Browse to the file, then select Upload & Verify.

The system validates the file and a message indicates results; including rows and details to update (if applicable) before submitting.

• Error: When an error is detected a message appears and indicates a recommended resolution. Select New, then choose an updated spreadsheet.

• Success: After validation, a message indicates the updated rows and details.

7. To finalize, select Submit.

Allowing an account to trade restricted products

For execution firms with a restricted product policy, an authorized ICC clearing firm ICC or sub-clearing firm administrator can set product limits to allow a specified account to submit trades.

The following procedure applies to ICC authorized accounts associated with a restricted execution firm.

• To allow an account to submit orders for restricted products:

1. Go to Account Management Service (AMS), search for an account, then enable product permissions.
2. Go to AMS - Credit Controls, then specify Max Qty / Max Qty Short product / position limits.

Note: For submitted orders, the more restrictive account or clearing firm limit applies.