Difference between revisions of "CME Group Clearing360"

From MarketsWiki
Jump to: navigation, search
Line 1: Line 1:
 
[[CME Group]] extended its existing [[clearing]] services to the [[over-the-counter]] (OTC) marketplace with the introduction of Clearing360.  
 
[[CME Group]] extended its existing [[clearing]] services to the [[over-the-counter]] (OTC) marketplace with the introduction of Clearing360.  
  
The first OTC marketplace able to participate in this new service is the short-term interest rate [[swap]] marketplace (which parallels the [[CME Eurodollar futures]] market) and the CME Group weather products. CME expects to extend CME Clearing360 services to more markets in the future. CME Clearing360 will allow [[hedge fund]]s, [[proprietary trading firms]] and global and regional banks to substitute OTC trades for [[cleared-only]] [[futures]] positions, providing clients access to the same performance guarantees that have previously only been available with exchange-traded products. <ref>{{cite web|url=http://www.cme.com/clearing/clr/360/index.html|name=CME Group Launches Clearing360|org=CME Group|date=July 24, 2008}}</ref>
+
The first OTC marketplace able to participate in this new service is the short-term interest rate [[swap]] marketplace (which parallels the [[CME Group Eurodollars]] market) and the CME Group weather products. CME expects to extend CME Clearing360 services to more markets in the future. CME Clearing360 will allow [[hedge fund]]s, [[proprietary trading firms]] and global and regional banks to substitute OTC trades for [[cleared-only]] [[futures]] positions, providing clients access to the same performance guarantees that have previously only been available with exchange-traded products. <ref>{{cite web|url=http://www.cme.com/clearing/clr/360/index.html|name=CME Group Launches Clearing360|org=CME Group|date=July 24, 2008}}</ref>
  
 
The CME Clearing360 application programming interface provides a new and more efficient means to report privately-negotiated trades and get them submitted to clearing. The goal is to make processing easier and more straight-through for traders, [[broker]]s and [[clearing firm]]s. The new “CME Clearing360 Trade Reporter” feature of the CME EOS Trader user interface is one of the most important applications which can write to the API. Using the Web-based Trade Reporter application, for example, a trader can report a [[block trade]] in a Eurodollar [[options]] strategy. The API will:
 
The CME Clearing360 application programming interface provides a new and more efficient means to report privately-negotiated trades and get them submitted to clearing. The goal is to make processing easier and more straight-through for traders, [[broker]]s and [[clearing firm]]s. The new “CME Clearing360 Trade Reporter” feature of the CME EOS Trader user interface is one of the most important applications which can write to the API. Using the Web-based Trade Reporter application, for example, a trader can report a [[block trade]] in a Eurodollar [[options]] strategy. The API will:
Line 7: Line 7:
 
*Price all the [[leg]]s of the strategy;  
 
*Price all the [[leg]]s of the strategy;  
 
*Verify that the trade conforms with minimum quantity rules for Eurodollar blocks;  
 
*Verify that the trade conforms with minimum quantity rules for Eurodollar blocks;  
*Eliminate the need for a phone call to the [[CME Globex Control Center]] (GCC), and cause the trade to be reported to the market;  
+
*Eliminate the need for a phone call to the [[CME Group Globex Control Center]] (GCC), and cause the trade to be reported to the market;  
 
*Submit the trade to clearing and;  
 
*Submit the trade to clearing and;  
 
*Cause the trade automatically to be loaded to the two clearing firms, once the trade has either passed a credit check on both sides, or been explicitly accepted.<ref>{{cite web|url=http://www.cme.com/clearing/clr/clradv/files/Chadv08-143.pdf|name=Clearing360|org=CME Group|date=July 24, 2008}}</ref>
 
*Cause the trade automatically to be loaded to the two clearing firms, once the trade has either passed a credit check on both sides, or been explicitly accepted.<ref>{{cite web|url=http://www.cme.com/clearing/clr/clradv/files/Chadv08-143.pdf|name=Clearing360|org=CME Group|date=July 24, 2008}}</ref>

Revision as of 13:07, 1 August 2008

CME Group extended its existing clearing services to the over-the-counter (OTC) marketplace with the introduction of Clearing360.

The first OTC marketplace able to participate in this new service is the short-term interest rate swap marketplace (which parallels the CME Group Eurodollars market) and the CME Group weather products. CME expects to extend CME Clearing360 services to more markets in the future. CME Clearing360 will allow hedge funds, proprietary trading firms and global and regional banks to substitute OTC trades for cleared-only futures positions, providing clients access to the same performance guarantees that have previously only been available with exchange-traded products. [1]

The CME Clearing360 application programming interface provides a new and more efficient means to report privately-negotiated trades and get them submitted to clearing. The goal is to make processing easier and more straight-through for traders, brokers and clearing firms. The new “CME Clearing360 Trade Reporter” feature of the CME EOS Trader user interface is one of the most important applications which can write to the API. Using the Web-based Trade Reporter application, for example, a trader can report a block trade in a Eurodollar options strategy. The API will:

  • Price all the legs of the strategy;
  • Verify that the trade conforms with minimum quantity rules for Eurodollar blocks;
  • Eliminate the need for a phone call to the CME Group Globex Control Center (GCC), and cause the trade to be reported to the market;
  • Submit the trade to clearing and;
  • Cause the trade automatically to be loaded to the two clearing firms, once the trade has either passed a credit check on both sides, or been explicitly accepted.[2]

References

  1. CME Group Launches Clearing360. CME Group.
  2. Clearing360. CME Group.

Resources

Clearing360 Clearing360 FAQ Pivot Instant Markets and CME Clearing360