CME STP FIX - Post Trade Events - BrokerTec

CME STP FIX - Post Trade Events - BrokerTec

The topic details the post trade events and messaging for trade cancel/correct on BrokerTec Fixed Income trades.

BrokerTec clients have the option to cancel or correct their trades. CME STP FIX will reflect these post trade events with Trade Capture Reports (35-MsgType=AE) and/or Collateral Report (35-MsgType=BA). Collateral report messages are applicable only to general collateral repo trades.

Trade Cancel and Correction can only be initiated by a BrokerTec client calling the Global Command Center (GCC).

Contents

Post Trade Events

The Cancel/Correct post trade events have region, timing and clearing model dependencies.

Timing and Regional dependency

Cancel/Correct post trade events can occur in the following timings:

  • Top Day: Cancel/Correct events occurred on the same date of the trade date.

  • Post Top Day: Cancel/Correct events occurred on a future date relative to the trade date.

BrokerTec Markets operate in U.S. and EU regions with different products traded in those regions.

The following table describes messages sent on CME STP FIX for post trade events based on timing, region and specific products.

U.S. Treasury (U.S. Region), EGB's (EU Region)

U.S. Repo (U.S. Region)

EU Repo (EU Region)

U.S. Treasury (U.S. Region), EGB's (EU Region)

U.S. Repo (U.S. Region)

EU Repo (EU Region)

Top Day: Trade Capture Reports (35-MsgType=AE) for Cancel/Correct post trade events are published

Top Day: Trade Capture Reports (35-MsgType=AE) for Cancel/Correct are NOT published for Specials, GC's and GCF's

When an allocated GC trade or one/more allocated pieces of a GC are cancelled, corresponding Collateral Message(s) (35-MsgType=BA) are published

Top Day:  Trade Capture Reports (35-MsgType=AE) for Cancel/Correct are published

When an allocated GC trade or one/more allocated pieces of a GC are cancelled, corresponding Collateral Message(s) (35-MsgType=BA) are published

Post Top Day: No Trade Capture or Collateral report messages are published.

Clearing Model Dependency

BrokerTec trades are cleared through different clearing entities based on the region where the products are traded.

Post trade events, such as cancels and corrections, follow two different models, “Cancel Clearing model” and “Offset Clearing model” depending on the clearer and products.

  • Cancel Model - A Trade Capture report indicating that a trade being canceled will be sent.

  • Offset Model - Two Trade Capture reports will be sent, one indicating replacement and another for the offsetting (opposite side).

The following table describes key CME STP FIX fields and their values, indicating the status, for both models and applicable products.

Offset Clearing Model

Cancel Clearing Model

Offset Clearing Model

Cancel Clearing Model

EU market with clearers LCH, LCHSA and for Bilateral (Belgium/Spain).

EU market with clearers BME, MONTE, EUREX and for Bilateral (other countries)

U.S. Treasury, U.S. RV Curve and RV Butterfly.

Trade Cancel Messaging

Assuming original Sell Trade 54-Side=2 (Sell), Client system receives two Trade Capture report (35-MsgType=AE) messages for trade cancel with the following fields:

  • 487-TradeReportTransType=2 (Replace); 828-TrdType=0(Regular Trade); 54-Side=2(Sell)

  • 487-TradeReportTransType=0 (New); 828-TrdTyp=3(Transfer); 54-Side=1(Buy)

Assuming original Sell Trade 54-Side=2 (Sell), Client system receives 1 Trade Capture report (35-MsgType=AE) message for trade cancel with the following attributes:

  • 487-TradeReportTransType=1 (Cancel); 828-TrdType=0(Regular Trade); 54-Side=2(Sell)

Trade Correction Messaging

Assuming original Sell Trade 54-Side=2 (Sell), Client system receives 3 Sell Trade capture report (35-MsgType=AE) messages for trade correction with following field:

  • 487-TradeReportTransType=2 (Replace); 828-TrdType=0(Regular Trade); 54-Side=2(Sell)

  • 487-TradeReportTransType=0 (New);828-TrdType=3(Transfer); 54-Side=1(Buy)

  • 487-TradeReportTransType=0 (New); 828-TrdType=0(Regular Trade); 54-Side=2(Sell)

Note: the initial sell order is reversed/offset by a buy order and vice versa.

Assuming original Sell Trade 54-Side=2 (Sell), Client system receives two trade capture report (35-MsgType=AE) messages for trade correction with the following fields:

  • 487-TradeReportTransType=1 (Cancel); 828-TrdType=0(Regular Trade); 54-Side=2(Sell)

  • 487-TradeReportTransType=0 (New); 828-TrdType=0(Regular Trade); 54-Side=2(Sell)




How was your Client Systems Wiki Experience? Submit Feedback

Copyright © 2024 CME Group Inc. All rights reserved.