Single- or Dual-Sided Entry Types

CME Clearing supports multiple trade submission models to submit outright and spread trades using CME ClearPort and CME Direct so the trades can be cleared.

Entry Types and Asset Classes

The following table summarizes the trade submission models supported by each OTC asset class. The check indicates supported. 

Single-Sided Trade Submission

In a single-sided trade submission, a submitter submits single-sided trades to be matched and cleared by CME Clearing. A submitter submits one side of the negotiated deal by specifying all the required trade identifiers. The Affirmation Platform (CME ClearPort) matches the trade when the opposite side submits a single-sided trade, based on the match criteria defined in the asset class.

The Affirmation Platform (CME ClearPort) validates these trades for party, account, product and credit limits and acknowledges the submitter.

• If a match occurs, both submitters received a single-sided match notification and the trade status is updated to reflect the match.

• If a match does not occur, the trade remains in an "Unmatched" state in CME ClearPort until the contract expires.

In this model, clearing members are required to set risk limits and have CME Group perform risk checks on their behalf. If the trade passes the CME Group risk checks, the trade is sent to clearing and the clearing firms are notified of the cleared trades.

A participant can request all alleged trades in which the participant is the counterparty and then submit their side of the deal.

Dual-Sided Trade Submission

In this model, the submitter submits a dual-sided trade by specifying all the required trade information for both the buy side and the sell side of the trade that requires CME Clearing. This model matches submitted, affirmed (matched, dual-sided) trades so the trade can be cleared by CME Clearing.

The Affirmation Platform validates these trades for party, account, product and limits and acknowledges the submitter.

• If the trade is validated and acknowlegement is sent to the submitter.

• If the trade fails any validations, the trade is rejected and a negative acknowledgment is sent to the submitter.