MQP Session Linking Scenario 10

MQP Session Linking Scenario 10

This scenario shows Mass Quote Protection (MQP) is triggered at aggregate product line level with resting quotes in the same product line on all linked sessions.

MQP Setting:

  • Session ABC, BCD, CDE under Firm ID 001 are linked into MQP Group 1

  • Deltas:

    • Product Group E2 - 0.15

    • Product Group E5 - 0.20

  • Product Groups under the Product Line:  E2, E5

  • Product Line Protection Enabled on all sessions

    • Session ABC - with MQP thresholds set at the product line level

    • Sesson BCD and CDE - with no MQP thresholds set at the product line level

SenderCompID

Product Line

Product Group

Traded Quantity
(Z)

Fill %
(F)

Delta (D)

SenderCompID

Product Line

Product Group

Traded Quantity
(Z)

Fill %
(F)

Delta (D)

ABC001

 

Enabled

 

 

250

180

80

E2

200

105

50

E5

200

105

75

BCD001

 

Enabled

 

E2

150

90

50

E5

250

105

75

CDE001

 

Enabled

 

E2

250

110

50

E5

250

105

75

Given:

Incoming order 1 - Sell 150 @15 for the E2 product group matches against resting bid from session ABC:

Incoming order 2 - Sell 100 @20 for the E5 product group matches against resting bid from session ABC:

Product Group E2

Session

Bid

Offer

Traded Quantity

Cumulative Traded Quantity at Product Line Level

Fill %

Delta

Product Group E2

Session

Bid

Offer

Traded Quantity

Cumulative Traded Quantity at Product Line Level

Fill %

Delta

Quote 1

ABC

200@15

100@20

150

150

75%

22.5

Quote 2

BCD

100@14

100@21

 

 

 

 

Quote 3

CDE

100@12

200@22

 

 

 

 

Product Group E5

Session

Bid

Offer

Traded

Quantity

 

Fill %

Delta

Quote 4

ABC

150@20

200@25

 100

250 - MQP Triggered at Product Line Level

 66.67%

 20

Quote 5

BCD

100@18

 

 

 

 

 

Quote 6

CDE

100@17

 200@27

 

 

 

 

Result:

Product Line Scope (E2 and E5): Since the aggregate product line protection is enabled on the triggering session ABC, CME Globex will enforce the mass quote protections at the aggregate product line level.

  • Upon a Mass Quote Protection (MQP) trigger, all resting quotes for the E2 and E5 product group are automatically cancelled across associated sessions.

    • Triggering Session (ABC): Quotes in the E2 product group are cancelled with Tag 9775 (UnsolicitedCancelType) = F (Cancellation has been triggered by Mass Quote Protection).

    • Linked Sessions (BDC and CDE): Quotes in the E2 product group are cancelled with Tag 9775 (UnsolicitedCancelType) = K (Cancellation has been triggered by Mass Quote Protection on Linked Session).

  • Once the MQP is active, any subsequent Mass Quote messages submitted for the product line (E2 and E5) from any associated sessions (ABC, BCD, CDE) will be rejected.

    • To resume quoting, each individual session must reset its MQP by submitting a Mass Quote (tag 35-MsgType=i) message with tag 9773-MMProtectionReset = 1 for each product group (E2 and E5).

 

 




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