Risk Management Services

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.

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

1 CME Group Business Lines
2 Risk Management Categories
3 Participant Models
4 Risk Management UIs and APIs
5 Testing and Certification
6 Contact Information

CME Group Business Lines

Business Line	Venues	Asset Class	Participant / Clearing Model	Regulators

Business Line	Venues	Asset Class	Participant / Clearing Model	Regulators
Futures and Options on CME Globex and CME ClearPort	CME Globex CME ClearPort Auction	Agriculture, Energy, Equity Index, FX Interest Rates, Metals and Options.	Clearing Members	CFTC
EBS on CME Globex and EBS Direct	CME Globex EBS Direct	FX, Metals and Cryptocurrency	Bilateral and Prime Trading	CFTC UK FCA
BrokerTec markets on CME Globex	CME Globex	Fixed Income	Bilateral and Prime Trading	SEC EU/UK SMA/FCA

Risk Management Categories

Risk management functions are broadly grouped into the following general categories:

Category	Management Level

Category	Management Level
Risk Limit Management	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.

Participant Models

CME Group supports cleared and non-CME Group cleared (bilateral or cleared elsewhere) trading models. The participant model dictates the Risk Manager types (admins) and management structure, such as credit entity levels.

Model	Participants

Model	Participants
Cleared Risk Management	Manager Type - CME Group, Clearing Members and Execution Firms/Trading Firms use risk management functions. Management Levels (Credit Entities) – Risk Limits and order management functions can be set on and applied to Globex Trading Firm (GFIDs), Clearing Accounts, Trading Sub-Accounts and Traders.
Bilateral and Cleared elsewhere	Manager Type – An admin can manage risk for themselves or for the clients that they may guarantee. Management Levels - Limit can be managed on GFIDs, Groups of GFIDs and Globex User IDs (Trader ID).

Risk Management UIs and APIs

To facilitate risk management, CME Group provides various user interfaces (UIs) and application programming interfaces (APIs) for different business lines and venues.

User interfaces are available from the CME Group Customer Center, which requires a CME Group Login and entitlements based on required Risk level administration.

Risk APIs use various technologies such a FIXML and JSON web services, which require an API ID for access.

Testing and Certification

CME Risk Management Services certification suites are available in AutoCert+. Certifications are mandatory for customers connecting to the following systems.

Futures and Options

Risk Management Interface API

CME AMS

Account Management Service API

EBS

EBS Risk Management API

An EBS Risk Management API and EBS Risk Management GUI are available for clients to manage their credit profiles. API clients are required to complete a functional certification via Autocert+ tool prior to production access.

For more information contact Certification Support for Electronic Trading (CSET).

Futures & Options on CME Globex and CME ClearPort

Venue	Category	Function	Service Description	Admin Type	Admin Level

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

EBS on CME Globex and EBS Direct

Venue	Category	Function	Service Description	Admin Type	Admin Level

Venue	Category	Function	Service Description	Admin Type	Admin Level
EBS on CME Globex EBS Direct	Credit Risk Management	Credit Relationships Credit Limits Credit Monitoring Kill/Unkill firm Audit History Reports	EBS Risk Management - User Interface EBS Risk Management - API EBS Credit Overview EBS Risk Management is available to Bilateral Risk Administrators and Prime Risk Administrators to manage credit relationships, configure risk limits and access other available credit functionality for all EBS instruments comprised of Spot, precious metals and non-deliverable forwards (NDF). It also supports monitoring credit usage, audit history, and to generate an end of day report. Read-only access is available for User Interface. Note: API access is only available for setting Credit Limits and Kill/Unkill firms.	EBS Bilateral Risk Admin EBS Prime Risk Admin	GFID
EBS on 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.	Clearing Member	Order
EBS 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
EBS on CME Globex	Order Management	Cancel on Disconnect	Cancel On Disconnect (COD) Cancel on Conclusion (COC) Cancel on Disconnect (COD) is CME Globex functionality that cancels all resting session/day EBS orders for registered iLink session IDs upon an ungraceful disconnect. Cancel on Conclusion (COC) is CME Globex functionality that auto-eliminates all working orders when a session Terminates and disconnects gracefully.	N/A	Session
EBS 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