Page Comparison

This topic is a high-level introduction to the types of pre-trade risk management services and functions available to CME Group clearing and trading participants. The functions described below are available through numerous risk management systems that are tailored for specific business lines.

Noteinfo
All risk management services are offered by CME Group on a best-efforts basis. Clearing Member Firm (CMF) Risk Administrators only have access to the Execution Firms and Exchanges that they guarantee. Any attempt to take action on an Executing Firm and Exchange assigned to a different CMF will be rejected.

Contents

Table of Contents

CME Group Business Lines

...

Category

Management Level

Risk Limit Management

Info
Note: Risk limits allow a risk admin to limit the risk taken during a trading session or CME Business Day.

Monetary Limits – Monetary Limits set based on expected market price volatility and can be set in margin or notional quantity amounts.
Delta (for Options) and DV01 (for Fixed Income) factors are used to normalize risk utilizations between instruments.
Position Limits – Long and Short Position Limits can be used for products that are traded in per Contract (Lot) terms.
Limit Alerts – Alerts/Threshold Alerts notify an admin or participant that a set percentage of a limit is breached.

Order Management

Block New Orders - Block new orders at different management levels.
Cancel Open Orders - Cancel open orders at different management levels.
Cancel on Disconnect (COD) – COD is functionality that cancels all resting orders upon an ungraceful disconnect.
Cancel on Conclusion (COC) - CME Globex functionality that auto-eliminates all working orders when a session Terminates and disconnects gracefully.
Maximum Order Size Limit - Maximum Quantity Limits/Clip-size Limits manage allowable order size.
Self-Match Prevention (SMP) - An optional functionality that allows market participants to prevent the matching of orders with common ownership.
Order Status and Management - Real-time access to information on working and filled orders.
Order and Trade Copies - A dedicated API service designed to facilitate real-time monitoring of trading activity.

Permission Management

Product Permissions – Allow and Deny List methodologies are applied.
Trade Type Permissions – Trade type permissions can be set to align with regulation or more restrictive for a specific client.

Dashboards and Reports

Realtime dashboards and end of day reports provide a risk management view of the credit utilization vs. limits.

Audit Trail

Risk management functions are supported by an audit trail documenting all changes in settings and their real-time effects.

...

Table filter

totalrow	,,,,,
fixedCols
hidelabels	false
ddSeparator
sparkName	Sparkline
hidePane	Filtration panel
limitHeight
sparkline	false
isFirstTimeEnter	true
default
cell-width	150
hideColumns	false
totalRowName
totalColName
disabled	false
enabledInEditor	false
globalFilter	false
id	1691503259301_-790814259
iconfilter
order	0
hideControls	false
inverse	false
numbering
datefilter
column	Category
sort
totalcol
disableSave	false
separator	Point (.)
rowsPerPage
labels	Category
thousandSeparator
ignoreFirstNrows
ddOperator	OR
userfilter
datepattern	dd M yy
numberfilter
heightValue
updateSelectOptions	false
worklog	365\|5\|8\|y w d h m\|y w d h m
isOR	AND
showNRowsifNotFiltered

Venue	Category	Function	Service Description	Admin Type	Admin Level
CME Globex	Order Management	Block, Unblock and Cancel	Kill Switch - User Interface Kill Switch Overview CME Kill Switch tool enables risk administrators to immediately block all new order entry and cancel all working orders.	Legal Clearing Entity Admin Execution firm Admin CME Admin	SenderComp Execution Firm Legal Clearing Entity
CME Globex	Order Management	Block and Unblock Cancel Orders (API Only)	Risk Management Interface (RMI) - User Interface Risk Management Interface (RMI) - API The Risk Management Interface (RMI) allows authorized Clearing Firm risk administrators to manage market exposure of their respective execution firms, at the account level	Clearing Firm Risk Admin	Account
CME Globex	Order Management	Cancel on Disconnect	Cancel On Disconnect (COD) Cancel on Disconnect (COD) is CME Globex functionality that cancels all resting session/day futures and options orders for registered iLink session IDs upon an ungraceful disconnect.	N/A	Session
CME Globex	Order Management	Self-Match Prevention	Self-Match Prevention Self-Match Prevention (SMP) is optional functionality that allows market participants to prevent the matching of orders for accounts with common ownership, within and across different Globex Firm IDs and within and across clearing firms.	N/A	GFID Account
CME Globex	Order Management	Order Status and Controls	FirmSoft - User Interface FirmSoft - Overview Real-time access to information on working and filled orders. A reliable alternative to view order status, view fill information, and cancel working orders originating from CME Direct, proprietary, and third-party trading systems.	Front Office Admin FirmSoft Users	Firms Accounts Session SenderID
CME Globex	Order Management	Mass Quote Protection	Mass Quote Protection - User Interface Mass Quote Protections (MQP) is a user selected function that, in certain situations, can automatically cancel resting quotes and time-out for user specified Group Codes, Product Line and Aggregate Product Lines.	Clearing Member	Execution Firm, Trader ID, Sender Comp ID. Asset Class, Product Line, Product Group.
CME Globex	Order Message Monitoring	Order and Trade Copies (real-time)	Drop Copy - API An API based service designed to facilitate real-time monitoring of order and trading activity (messages) on the CME Globex platform.	Clearing Member Execution Firm	GFID
CME Globex	Permission Management	Product Permission	Access Manager - User Interface Authorized users can permit accounts to submit orders for restricted products during the restricted period before contract expiration.	Clearing Member	Account
CME Globex	Risk Limit Management	Exposure Limits Maximum Order Size Limits Reports Alert Notifications	CME Globex Credit Controls (GC2) - User Interface CME Globex Credit Controls (GC2) is a front-end application that provides pre-execution risk controls that enable Clearing Firm or partner exchange Clearing firm risk administrators to set credit limits.	Clearing Member Execution Firm	Execution Firm (by Exchange Group)
CME Globex	Risk Limit Management	Position Limits	Inline Credit Controls (ICC) - User Interface Inline Credit Controls (ICC) - API Set daily position limits per product, at the account level. In the Account Management Service.	Clearing Member Execution Firm	Account
CME ClearPort CME Direct	Risk Limit Management	Position Limits	Credit Controls - User Interface Credit Controls - API Set daily position limits per product, at the account level. In the Account Management Service.	Clearing Member	Account
CME Globex CME ClearPort CME Direct	Risk Limit Management	Product Restriction Max Order Quantity	Entity Risk Management - User Interface CME Entity Risk Management Service is used to manage user, firm and product-level risk for trading CME Group products electronically on the Central Limit Order Book and pre-negotiated trades	Clearing Member	Account
CME Globex CME ClearPort	Risk Monitoring	View daily account and clearing firm activity summary. View activated threshold alerts. Audit trail of all account / firm activity. List of rejected trades Account and clearing firm limit usage, as a chart or table.	Risk Monitor - User Interface Risk Monitor service to access a monitoring dashboard, to view and access audit details, and monitor limit usage.	Clearing Member Execution Firm Trading Firm	Account

...

Table filter

totalrow	,,,,,
fixedCols
hidelabels	false
ddSeparator
sparkName	Sparkline
hidePane	Filtration panel
limitHeight
sparkline	false
isFirstTimeEnter	true
default
cell-width	250
hideColumns	false
totalRowName
totalColName
disabled	false
enabledInEditor	false
globalFilter	false
id	1691503259304_782024638
iconfilter
order	0
hideControls	false
inverse	false
numbering
datefilter
column	Category
sort
totalcol
disableSave	false
separator	Point (.)
rowsPerPage
labels	Category
thousandSeparator
ignoreFirstNrows
ddOperator	OR
userfilter
datepattern	dd M yy
numberfilter
heightValue
updateSelectOptions	false
worklog	365\|5\|8\|y w d h m\|y w d h m
isOR	AND
showNRowsifNotFiltered

Venue

BrokerTec Markets on CME Globex

Table filter

totalrow	,,,,,
fixedCols
hidelabels	false
ddSeparator
sparkName	Sparkline
hidePane	Filtration panel
limitHeight
sparkline	false
isFirstTimeEnter	true
default
cell-width	250
hideColumns	false
totalRowName
totalColName
disabled	false
enabledInEditor	false
globalFilter	false
id	1691503259306_546729958
iconfilter
order	0
hideControls	false
inverse	false
numbering
datefilter
column	Category
sort
totalcol
disableSave	false
separator	Point (.)
rowsPerPage
labels	Category
thousandSeparator
ignoreFirstNrows
ddOperator	OR
userfilter
datepattern	dd M yy
numberfilter
heightValue
updateSelectOptions	false
worklog	365\|5\|8\|y w d h m\|y w d h m
isOR	AND
showNRowsifNotFiltered

Venue	Category	Function	Service Description	Admin Type	Admin Level
BrokerTec Markets on CME Globex BrokerTec Stream	Credit Limit Management Order and Trade Management Dashboards and Reports	Notional Limits Max Order Size Dashboard Utilization Alerts	BrokerTec Risk Management - User Interface BrokerTec Risk Management is used by Firm administrators and viewers to access and manage BrokerTec risk and product settings.	Execution Firm	GFID Groups Trader
BrokerTec Markets on CME Globex	Order Management	Order Status and Controls	Firm Soft - User Interface Real-time access to information on working and filled orders. A reliable alternative to view order status, view fill information, and cancel working orders originating from CME Direct, proprietary, and third-party trading systems.	Execution Firm	Order
BrokerTec Markets on CME Globex	Order Management	Cancel on Disconnect	Cancel On Disconnect (COD) Cancel on Disconnect (COD) is CME Globex functionality that cancels all resting session/day BrokerTec orders for registered iLink session IDs upon an ungraceful disconnect.	N/A	Session
BrokerTec Markets on CME Globex	Order Management	Duplicate Order Check	Duplicate Order Prevention The Securities Exchange Act Rule 15c35 – Risk Management Controls for Brokers or Dealers with Market Access requires that financial risk management controls and supervisory procedures be reasonably designed to systematically limit the financial exposure of the broker dealer that could arise as a result of market access. The iLink 3 duplicate order check is designed to address this risk by: Supporting valid trading activity, and Preventing the entry of erroneous orders by rejecting orders that that indicate duplicative orders over a short period of time.	N/A	Session
BrokerTec Markets on CME Globex	Order Management	Self-Match Prevention	Self-Match Prevention Self-Match Prevention (SMP) is optional functionality that allows market participants to prevent the matching of orders for accounts with common ownership, within and across different Globex Firm IDs and within and across clearing firms.	N/A	GFID GUS
BrokerTec Markets on CME Globex	Order Message Monitoring	Order and Trade Copies	Drop Copy - API An API based service designed to facilitate real-time monitoring of trading activity on the CME Globex platform.	Execution Firm	GFID

Contact Information

...

Versions Compared

Old Version 2

New Version Current

Key

CME Group Business Lines

BrokerTec Markets on CME Globex

Contact Information