Oct 12, 2012
This Advisory Notice supersedes NYMEX Market Regulation Advisory Notice RA1201-6 (Rule 525 Core Principle 9(B)(iii) Trades) from September 26, 2012. Rule 525 will not become effective and will be formally withdrawn upon the effective date of the block trade rules that NYMEX submitted to the CFTC on September 27, 2012. The block trade rules are scheduled to become effective at the start of trading on October 15, pursuant to the self-certification process. This Advisory Notice is being issued to notify the marketplace that the CME ClearPort business model will be transitioned to promote direct execution of the CME ClearPort slate of futures contracts and options on futures contracts by means of trading on CME Globex and on the trading floor. All CME ClearPort contracts already listed on CME Globex will continue to be offered on that platform, and ongoing product additions to CME Globex will continue as per the schedule identified here.
In order to ensure orderly trading for those products that market participants may wish to trade apart from the public auction market and that are eligible for such trading, the block trade rules that NYMEX submitted to the CFTC on October 1, 2012, are scheduled to become effective at the start of trading on October 15, pursuant to the self-certification process.
Exchange for Related Position (EFRP, including EFS and EOO) transactions may continue under our rules as another means of execution in CME ClearPort products for market participants. It is our understanding that the CFTC Division of Swap Dealer and Intermediary Oversight will be issuing interpretive guidance making clear that the swap component of any EFRP trade is a swap that is subject to all applicable swap regulations, including such swap regulations that are effective as of October 12, 2012.
We also understand the CFTC Division of Swap Dealer and Intermediary Oversight will today be issuing no-action relief which provides that the swap components of EFRP trades that are entered into prior to December 31, 2012, will not count toward any market participant's swap dealer de minimis threshold.
This Advisory Notice also supersedes the CME Open Letter to the Energy Market of September 24, 2012, (and associated CME ClearPort FAQ), which are also withdrawn.
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the world's leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.
SOURCE CME Group