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CME Group – BMV Electronic Trading Overview & Customer On-Boarding February 3rd, 2011.

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Presentation on theme: "CME Group – BMV Electronic Trading Overview & Customer On-Boarding February 3rd, 2011."— Presentation transcript:

1 CME Group – BMV Electronic Trading Overview & Customer On-Boarding February 3rd, 2011

2 Partnership Overview

3 © 2010 CME Group. All rights reserved CME Group Customers 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 Partnership Benefits for Customers, BMV, CME Group 3

4 © 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

5 © 2010 CME Group. All rights reserved 5 Order Routing Overview South to North Seamless Access to Customers Mexican Customer CME Group Market Data Order Messages MexDer Translation CME Group Market Data Order Messages Globex CMEG Clearing North to South U.S. Customer MexDer Market Data Order Messages CMEG Translation MexDer Market Data Order Messages MexDerAsigna Direct or Indirect Relationship

6 Electronic Trading Overview: South to North

7 © 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

8 Available CME Group products 8 Asset ClassProduct NameGlobex Symbol AgricultureCorn FuturesZC AgricultureCorn OptionsOZC EnergyE-mini Natural Gas FuturesQG EnergyLight Sweet Crude Oil FuturesCL Equity IndexesE-mini Dow ($5) FuturesYM Equity IndexesE-mini NASDAQ-100 FuturesNQ Equity IndexesE-mini S&P 500 FuturesES Equity IndexesE-mini S&P 500 OptionsES FXBritish Pound Futures6B FXE-mini Japanese Yen FuturesJ7 FXEuro FX Futures6E FXJapanese Yen Futures6J FXMexican Peso Futures6M Interest Rates10-Year U.S. Treasury Note FuturesZN Interest RatesEurodollar FuturesGE MetalsGold FuturesGC MetalsSilver FuturesSI

9 © 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 CMEG Globex Match Engine U.S.Mexico US FCM Account with CMEG Clearing Firm required 40 Mbps line OR Globex Credit Controls set by CMEG Clearing Firm

10 Customer On-Boarding: South to North

11 © 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-***** 11

12 © 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? 12

13 © 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? 13

14 Electronic Trading Overview: North to South

15 © 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

16 Customer CME Globex Infrastructure CMEG Mexico Globex Hub CMEG Broker Lines to Globex North to South Connectivity: Order Routing to MexDer via existing line to CME Globex MexDer Match Engine MEXICO US Asigna Clearing Member Account with MexDer Clearing Firm required 40 Mbps line OR

17 Electronic Trading on CME Globex

18 © 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

19 © 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*** 19

20 © 2010 CME Group. All rights reserved Customer CMEG Mexico Globex Hub Connection to CME Group Hub in Mexico via Dedicated Lines Redundant Customer lines CMEG Globex Match Engine U.S.MEXICO US FCM Account with CMEG Clearing Firm required 40 Mbps line Globex Credit Controls set by CMEG Clearing Firm

21 © 2010 CME Group. All rights reserved CME Globex Order Routing Messaging New Order Filled Customer Broker OR CME Globex Match Engine New Order Order Acknowledgement Fill

22 © 2010 CME Group. All rights reserved CME Globex Order Routing Messaging New Order with Partial Fills Customer Broker OR CME Globex Match Engine New Order (10 contracts) Order Acknowledgement Partial Fill (2) Partial Fill (6)

23 © 2010 CME Group. All rights reserved CME Globex Order Routing Messaging Order Modification Customer Broker OR CME Globex Match Engine New Order Order Acknowledgement Cancel/Replace Acknowledgement Fill Order Cancel/Replace (Modification)

24 © 2010 CME Group. All rights reserved CME Globex Order Routing Messaging Order Modification with Partial Fill Customer Broker OR CME Globex Match Engine New Order Order Acknowledgement Cancel/Replace Acknowledgement Fill Order Cancel/Replace (modification) Partial Fill

25 © 2010 CME Group. All rights reserved CME Globex Order Routing Messaging Order Cancellation Customer Broker OR CME Globex Match Engine New Order Order Acknowledgement Order Cancellation Acknowledgement Order Cancel

26 © 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


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