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 Markets 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 and BrokerTec Stream	CME Globex BrokerTec Stream	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	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.

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

EBS on CME Globex and EBS Direct

BrokerTec Markets on CME Globex

Contact Information

For Risk Management Services inquiries, please contact Global Account Management.