cme group – bmv electronic trading overview & customer on-boarding february 3rd, 2011
TRANSCRIPT
CME Group – BMVElectronic Trading Overview & Customer On-Boarding
February 3rd, 2011
Partnership Overview
© 2010 CME Group. All rights reserved
CME G
roup C
ustomers
BMV Group
Partnership Benefits
• Broaden customer access and increase trading volume of CME Group products
• Develop relationships with non-US brokers and regulators
• Leverage CME Group global distribution, risk management expertise
• Leverage CME Group sales, marketing and customer relationships
CME Group
BMV Group
• Access every major derivatives asset class on CME Globex
• Safety of CME Clearing
Customers
Customer Focused PartnershipBenefits for Customers, BMV, CME Group
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© 2010 CME Group. All rights reserved
Partnership Overview
4
1: Excludes MexDer customers from Mexico or Latin America; 30% gross revenue share of revenue for direct collocation customers
2-way Order Routing for Derivatives
Board Level Involvement
MOU for joint efforts in market
development
Equity Investment
Long-Term Strategic
Partnership
© 2010 CME Group. All rights reserved 5
Order Routing Overview
South to North
Seamless Access to Customers
Mexican Customer C
ME
Group
Market D
ata
Order
Messages
MexDer Translation C
ME
Group
Market D
ata
Order
Messages
GlobexCMEG
Clearing
North to South
U.S. Customer
MexD
er
Market D
ata
Order
Messages
CMEG Translation
MexD
er
Market D
ata
Order
Messages
MexDerAsignaD
irect
or
Indi
rect
R
elat
ions
hip
Dire
ct o
r In
dire
ct
Rel
atio
nshi
p
Electronic Trading Overview: South to North
© 2010 CME Group. All rights reserved
Order Routing Basics: MexDer to CME Group
BMV customers will be able to leverage their existing connectivity
to MexDer to trade CME Group products:
•All CME, CBOT, NYMEX and COMEX market data will be available via
MexDer connectivity
•Orders will route “South to North” from the customer’s MexDer connection via
a high speed international circuit to CME Globex
•All CME Group products clear at the CME Clearing House
•CME Group Clearing Firm relationship required
•Targeted launch early Spring 2011
7© 2010 CME Group. All rights reserved
© 2010 CME Group. All rights reserved
Available CME Group products
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Asset Class Product Name Globex Symbol
Agriculture Corn Futures ZC
Agriculture Corn Options OZC
Energy E-mini Natural Gas Futures QG
Energy Light Sweet Crude Oil Futures CL
Equity Indexes E-mini Dow ($5) Futures YM
Equity Indexes E-mini NASDAQ-100 Futures NQ
Equity Indexes E-mini S&P 500 Futures ES
Equity Indexes E-mini S&P 500 Options ES
FX British Pound Futures 6B
FX E-mini Japanese Yen Futures J7
FX Euro FX Futures 6E
FX Japanese Yen Futures 6J
FX Mexican Peso Futures 6M
Interest Rates 10-Year U.S. Treasury Note Futures ZN
Interest Rates Eurodollar Futures GE
Metals Gold Futures GC
Metals Silver Futures SI
© 2010 CME Group. All rights reserved
Customer
MexDer Infrastructure
CMEG Mexico Globex Hub
MexDer Broker
Lines to MexDer
South to North Connectivity: Order Routing to CME Group via existing Line to MexDer
CMEGGlobex
Match Engine
U.S.Mexico
US FCM
Account with CMEG Clearing Firm required
40 Mbps line
40 Mbps line
OR
Globex Credit Controlsset by CMEGClearing Firm
Customer On-Boarding: South to North
© 2010 CME Group. All rights reserved
Customers using the MexDer provided RTS screen
Customers using the MexDer provided front end system (RTS screen) will not require any additional certification
• Key Business features: bullets listed to be provided by MexDer/RTS
• How to connect for Order Entry and Market data: Describes how clients will connect to MexDer for this option (steps below) MexDer - please define/add details
New Customer would contact their MexDer Clearing member or MexDer Trading member and request access to the CME market.
MexDer Clearing member or MexDer Trading member will need to setup a CME clearing member relationship. This relationship can be direct or
indirect
CME clearing member would work with CME Group and MexDer to provide access to the new MexDer customer.
The MexDer clearing member or MexDer trading member would provide this information to (BMV contact) so they can setup the account in RTS.
The setup would include account number, iLink session, market data access markets.
• Additional information: This section will contain links to additional technical documents that RTS has for screens – MexDer please provide
• Contacts at MexDer: necessary contacts that can be leveraged for any questions-*****
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© 2010 CME Group. All rights reserved
Customers who want access via the FIX API 4.2 interface Customers who wish to use a non-exchange provided front-end or
proprietary systems, MexDer requires additional certification in order to ensure they can correctly support CME Group products, Market Data and order routing.
• Key business features: bullets provided by MexDer/RTS
• Certification to MexDer API (requirements, steps, etc.)
• Functional impacts (documents and links to appropriate docs)
• How clients will connect to MexDer for Order Entry and Market Data
• Technical specifications
• Links to documentation necessary for the APIs
• Who to contact at the exchange for assistance (names, numbers, email)
• Other topics that will need to be covered?
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© 2010 CME Group. All rights reserved
Customers who want access via the FIX API 4.4 interface (will this even be available for the event?)
Customers who wish to use a non-exchange provided front-end or proprietary systems, MexDer requires additional certification in order to ensure they can correctly support CME Group products, Market Data and order routing.
• Key business features: bullets provided by MexDer/RTS
• Certification to MexDer API (requirements, steps, etc.)
• Functional impacts (documents and links to appropriate docs)
• How clients will connect to MexDer for Order Entry and Market Data
• Technical specifications
• Links to documentation necessary for the APIs
• Who to contact at the exchange for assistance (names, numbers, email)
• Other topics that will need to be covered?
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Electronic Trading Overview: North to South
© 2010 CME Group. All rights reserved
Order Routing Basics: CME Group to MexDer
CME Group customers will be able to leverage their existing
connectivity to CME Globex to trade MexDer products:
•All MexDer interest rate and equity index derivatives product market data will
be available on the CME Globex platform
•Orders will route “North to South” from the customer’s CME Globex connection
via a high speed international circuit to MexDer’s matching engine
•All MexDer products clear at Asigna
•Asigna Clearing Firm relationship required
•Targeted launch in the second half of 2011
15© 2010 CME Group. All rights reserved
© 2010 CME Group. All rights reserved
Customer
CME GlobexInfrastructure
CMEG Mexico Globex Hub
CMEG Broker
Lines to Globex
North to South Connectivity: Order Routing to MexDer via existing line to CME Globex
MexDerMatch Engine
MEXICOUS
Asigna Clearing Member
Account with MexDerClearing Firm required
40 Mbps line
40 Mbps line
OR
Electronic Trading on CME Globex
© 2010 CME Group. All rights reserved
CME Globex Hub in Mexico
In conjunction with the strategic partnership between CME Group and BMV, CME Group will launch a new telecommunications hub in Mexico City Region targeted for 2011:
• Provides new CME Group hub in the Mexico City region
• Standard, redundant international hub
• Access to all CME Group and Partner Exchange products
• Facilitates connectivity and reduces latency to the Globex network for Mexican and Latin American customers
© 2010 CME Group. All rights reserved
Product Availability – MexDer products
***Please provide a list of the products that will be available via North to South Order Routing***
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© 2010 CME Group. All rights reserved
Customer
CMEG Mexico Globex Hub
Connection to CME Group Hub in Mexico via Dedicated Lines
Redundan
t
Custom
er lin
es
CMEGGlobex
Match Engine
U.S.MEXICO
US FCM
Account with CMEG Clearing Firm required
40 Mbps line
Globex Credit Controlsset by CMEGClearing Firm
© 2010 CME Group. All rights reserved
CME Globex Order Routing Messaging
New Order Filled
Customer
Broker
OR
CMEGlobex
Match Engine
New Order
Order Acknowledgement
Fill
© 2010 CME Group. All rights reserved
CME Globex Order Routing Messaging
New Order with Partial Fills
Customer
Broker
ORCME
Globex Match Engine
New Order (10 contracts)
Order Acknowledgement
Partial Fill (2)
Partial Fill (2)
Partial Fill (6)
© 2010 CME Group. All rights reserved
CME Globex Order Routing Messaging
Order Modification
Customer
Broker
ORCME
Globex Match Engine
New Order
Order Acknowledgement
Cancel/Replace Acknowledgement
Fill
Order Cancel/Replace (Modification)
© 2010 CME Group. All rights reserved
CME Globex Order Routing Messaging
Order Modification with Partial Fill
Customer
Broker
ORCME
Globex Match Engine
New Order
Order Acknowledgement
Cancel/Replace Acknowledgement
Fill
Order Cancel/Replace (modification)
Partial Fill
© 2010 CME Group. All rights reserved
CME Globex Order Routing Messaging
Order Cancellation
Customer
Broker
ORCME
Globex Match Engine
New Order
Order Acknowledgement
Order Cancellation Acknowledgement
Order Cancel
© 2010 CME Group. All rights reserved
CME Group Trade Cancellation Policy
If an order execution occurs at a price not representative of the current market, the CME Group Globex registered contact may call the GCC to request to have the trade reviewed
• To invoke the policy a Globex registered contact** must call the GCC (Globex
Control Center) within eight minutes of the error trade
• CME Group Clearing Member firms will call on behalf of customers who are not GCC
authorized contacts
• In order to cancel or price adjust a trade, the GCC determines if the trade is within
the Non-Reviewable Range (if it is, the trade stands)
• If a trade is outside the Non-Reviewable Range, the GCC messages all CME Globex
registered contacts via Targeted Messaging and the quote vendor network alerting
that the trade has been cancelled or adjusted
**Only CME Group Clearing Firms may request Globex Control Center registered contact status on behalf of their
customers. Please refer any questions to your CME Group Clearing Firm
26© 2010 CME Group. All rights reserved