This topic describes how exchange-traded products are defined and customers trading on the exchange identified on the CME Globex electronic trading platform.
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Product Model
The Product Model illustrates the product hierarchy which defines the marketplace at CME Group where securities, commodities, derivatives and other financial instruments are traded. This marketplace on the CME Globex platform consists of the following inter-related components.
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Instrument and Contract are synonymous on the CME Globex platform. |
Exchange
CME Group exchanges include CME, CBOT, NYMEX and COMEX. Various products are traded on certain exchanges. For example, precious metals are listed as COMEX Products.
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This marketplace covers U.S. residential and commercial properties. The products are used by property owners, manufacturers, hedge funds, and investors.
Product Code
The product code identifies the product (asset) upon which the derivative instrument is based. The Product Code may be different for the same underlying asset for futures and options instruments.
Examples
For the SOFR futures instrument SR1U3, the Product Code is 'SR1'.
For the SOFR options instrument SR3Q23 P9175 the Product Code is ‘SR3’.
For the Corn futures instrument ZCZ7, the Product Code is 'ZC'.
For the Corn options instrument OZC C325, the Product Code is 'OZC'.
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For intercommodity spreads the Product Code will be the value for the first product group of the spread. |
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Product Code is sent in tag 6937-Asset of the market dataSecurity Definitionmessage. |
Instrument
An instrument represents the tradable market on which quotes and orders are submitted and filled. The instrument defines all attributes of that which is traded, i.e., product complex, product group, expiration, strike price, etc. See also Instrument Types Available on CME Globex.
Products traded on CME Globex are constructed according to the following hierarchy.
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The instrument identifier is sent in tag 48-SecurityID of the market dataSecurity Definitionmessage. The external instrument name is sent in MDP tag 55-Symbol and iLink tag 107-SecurityDesc. CME Group does not recommend parsing the external instrument name to determine instrument characteristics. The value is a technical solution for a unique and constant string to identify instruments. |
Customer Model
The Customer Model reflects the way trading actors are identified on the platform as well as the organization of their identifiers and characteristics. The core actors on the trading platforms are clearing member firms, executing trading firms, executing account and operators.
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The following are definitions of the core actors.
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An executing firm or trading firm is the entity submitting and managing orders on the trading platform for itself or on behalf of an investor. An executing firm or trading firm must be authorized by a clearing firm to trade instruments of specific exchanges on the CME Globex platform.
CME | CBOT | NYMEX | COMEX | MGEX | BMD | |
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Trading Firm | TFA | TFA | TFA | TFA | TFA | TFA |
Clearing Firm | CFA | CFB | CFC | CFC | CFD | - |
Trading Firm A, identified as TFA is authorized to trade CME instruments by Clearing Firm CFA. CFA guarantees the trade performed by Trading Firm A. CFA may restrict what CME instruments Trading Firm A can and cannot trade.
Trading Firm A, identified as TFA is authorized to trade CBOT instruments by Clearing Firm CFB. CFB guarantees the trade performed by Trading Firm A. CFB may restrict what CBOT instruments Trading Firm A can and cannot trade.
Trading Firm A, identified as TFA does not have any relationship with a Clearing firm authorized to clear BMD instruments, therefore TFA is not authorized to trade BMD instruments.
Executing Account
Customer account identifier. It must be unique for trading firm.
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The identification of the location of the operator is mandatory on all orders submitted on the CME Globex platform.
See also:
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