Clearing Firm OTC Confirmation and Claim API
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CME Clearing provides the Clearing Firm Trade Confirmation and Claim API as a means of trade reporting for Clearing Firms that guarantee Credit, FX, Interest Rates, and Commodity OTC trades for their customers. The API allows clearing firms to receive cleared trade confirms for their OTC trades and claim or reject their trades.
This page provides an overview of the usage of the API functions, workflows, message flows, and interfaces to allow clearing firms to receive cleared trade confirmations and claim or reject trades.
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Supported Functions
The Clearing Firm API supports the following functions.
Function | Description |
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Cleared Trade Notification | The clearing firm is notified of the cleared trade. The cleared trade includes a unique trade id that was generated for the trade, a cleared Swap Identifer (USI) or Unique Trade Identifier (UTI), information on how the trade was credit checked and other trade economics. |
Claim/Accept Trade | This allows the clearing firm to claim an alleged trade. |
Decline/Reject Trade | This allows the clearing firm to reject an alleged trade. |
Trades are submitted by platforms into CME Clearing via the CME ClearPort API. Once trades are cleared by CME Clearing, a single trade between two participants will be transformed into two trades, one between the first participant and CME, and the other, on identical and opposite terms, between CME and the second participant. Cleared Trade confirms will be sent to the corresponding Clearing Firms. For trades that need to be claimed, the API will notify the appropriate clearing firm.
Supported Message Format
For Interest Rate Swaps, the API is supported using Fpml.
Trade Submission Models
Trades submitted to CME Clearing can be either pre-approved or claimed as described below.
Pre-Approved (Credit Checked) Trade Submission
For pre-approved trade submission:
credit checks can be done by the Swap Execution Facility (SEF) and the pre-approved trade submitted for clearing, or
clearing firms can maintain their limits in CME.
In each case, the trade is considered instantly cleared (if clearing firms of both counterparties have done the same) and both clearing firms are instantly notified of the cleared trade. The clearing system assigns a cleared trade ID and Unique Swap Identifer (USI) or Unique Trade Identifier (UTI) sent on the cleared trade notification. For detailed workflows refer to Conceptual flows.
Explicit Trade Claim
Clearing firms also have the option to explicitly claim trades. In this model, CME Clearing notifies the clearing firm of an alleged trade when a trade is submitted for clearing. When the clearing firm of both sides have claimed the trade, the trade is considered to be cleared. The clearing firm is notified of the cleared trade. The clearing system will assign a cleared trade ID and a USI/UTI and send them out on the cleared trade notification. For detailed workflows refer to Conceptual flows.
Connectivity
The CME Clearing Firm API supports the following connectivity mode:
IBM WebSphere MQ
Customers have the option of connecting over a secure network via IBM Websphere MQ to submit messages through a remote queue and having message responses pushed to their local queue. IBM WebSphere MQ clients do not require user authentication since MQ is a secure method of transport.
Clients implementing MQ can also refer to Connectivity Options.
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