CME STP FIXML - Post Trade Events - BrokerTec

CME STP FIXML - Post Trade Events - BrokerTec

This topic describes the post trade events for BrokerTec Fixed Income (FI) trades.

Contents

Introduction

BrokerTec clients have the option to Cancel or Correct their trades. CME STP FIXML will reflect these post trade events with Trade Capture Reports (/TrdCaptRpt) and/or Collateral Report (/CollRpt). Collateral report messages applicable only to General Collateral Repo trades.

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

Messaging Dependencies

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

Post trade events - Timing and Region

Cancel/Correct post trade events can occur in following timing.

  • Top Day: Cancel/Correct events occurred on the same date of the Trade (Trade date)

  • Post Top Day: Cancel/Correct events occurred on future date relative to Trade (Trade date)

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

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

U.S. Treasury (U.S. Region), EGBs (EU Region)

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

EU Repo (EU Region)

U.S. Treasury (U.S. Region), EGBs (EU Region)

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

EU Repo (EU Region)

Top Day: Trade Capture Reports (/TrdCaptRpt) for Cancel/Correct post trade events are published

Top Day: Trade Capture Reports (/TrdCaptRpt) for Cancel/Correct are NOT published for Specials, GCs and GCFs

When an allocated GC trade or one/more allocated pieces of a GC are cancelled, corresponding Collateral Message(s) (/CollRpt) are published

Top Day:  Trade Capture Reports (/TrdCaptRpt) for Cancel/Correct are published

 

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

Post Trade Events - Clearing Model

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

Post trade events, Cancel/Correct, 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 cancelled 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 details the key STP FIXML attributes and their values, indicating the status, for both these 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

Client system receives 2 Trade Capture report (/TrdCaptRpt) messages for trade cancel with following attributes

  • @TransTyp=2 (Replace); @TrdTyp=0(Regular Trade); /TrdCapRptSideGrp/@Side=2(Sell)

  • @TransTyp=0 (New); @TrdTyp=3(Transfer); /TrdCapRptSideGrp/@Side=1(Buy)

Client system receives 1 Trade Capture report (/TrdCaptRpt) message for trade cancel with following attributes

  • @TransTyp=1 (Cancel); @TrdTyp=0(Regular Trade); /TrdCapRptSideGrp/@Side=2(Sell)

Trade Correction Messaging

Client system receives 3 Trade capture report (/TrdCaptRpt) messages for trade correction with following attributes

  • @TransTyp=2 (Replace); @TrdTyp=0(Regular Trade); /TrdCapRptSideGrp/@Side=2(Sell)

  • @TransTyp=0 (New);@TrdTyp=3(Transfer); /TrdCapRptSideGrp/@Side=1(Buy)

  • @TransTyp=0 (New); @TrdTyp=0(Regular Trade); /TrdCapRptSideGrp/@Side=2(Sell)

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

Client system receives 2 Trade capture report (/TrdCaptRpt) messages for trade correction with following attributes

  • @TransTyp=1 (Cancel); @TrdTyp=0(Regular Trade); /TrdCapRptSideGrp/@Side=2(Sell)

  • @TransTyp=0 (New); @TrdTyp=0(Regular Trade); /TrdCapRptSideGrp/@Side=2(Sell)

Message Scenarios

This section describes the messages, key attributes and their values for Cancel/Correct post trade events.

This section does not cover Cancel/Correct post trade events for General Collateral Repos.

Cancel Model - Full Trade Cancel

A trade is cancelled in full Top Day. Following table outlines the key attributes and their values for this “Cancel model” scenario.

Message

@TransTyp

@TrdTyp

@TrdID2

/TrdCapRptSideGrp/@OridTrdID

@PackageID

Description

/TrdCaptRpt

0=New

0=Regular Trade

ABC111

-

-

Original Trade

/TrdCaptRpt

1=Cancel

0=Regular Trade

ABC111

-

-

Cancellation of original trade

Cancel Model - Trade Correction

A trade is corrected Top Day. Following table outlines the key attributes and their values for this “Cancel model” scenario.

Message

@TransTyp

@TrdTyp

@TrdID2

/TrdCapRptSideGrp/@OridTrdID

@PackageID

Description

/TrdCaptRpt

0=New

0=Regular Trade

ABC222

-

-

Original Trade

/TrdCaptRpt

1=Cancel

0=Regular Trade

ABC222

-

BCD234

Cancellation of original trade

/TrdCaptRpt

0=New

0=Regular Trade

BCD234

ABC222

-

Replacement Trade

  • @PackageID - In Trade cancel message, value points to @TrdID2 of the replacement trade

  • /TrdCapRptSideGrp/@OrigTrdID - In Trade replacement message, value points to @TrdID2 of the original trade

Offset Model - Full Trade Cancel

A trade is cancelled in full Top Day. The following table outlines the key attributes and their values for this “Offset model” scenario.

Message

@TransTyp

@TrdTyp

@TrdID2

/TrdCapRptSideGrp/@OridTrdID

@PackageID

Description

/TrdCaptRpt

0=New

0=Regular Trade

ABC333

-

-

Original Trade

/TrdCaptRpt

2=Replace

0=Regular Trade

ABC333

-

-

Update of original trade

/TrdCaptRpt

0=New

3=Transfer

BCD222

ABC333

-

Replacement Trade

/TrdCapRptSideGrp/@OrigTrdID - In Trade replacement message, value points to @TrdID2 of the originally cancelled trade

Offset Model - Trade Correction

A trade is corrected Top Day. The following table outlines the key attributes and their values for this “Offset model” scenario.

Message

@TransTyp

@TrdTyp

@TrdID2

/TrdCapRptSideGrp/@OridTrdID

@PackageID

Description

/TrdCaptRpt

0=New

0=Regular Trade

ABC555

-

-

Original Trade

/TrdCaptRpt

2=Replace

0=Regular Trade

ABC555

-

CDE345

Update of original trade

/TrdCaptRpt

0=New

3=Transfer

BCD222

ABC555

-

Offset of Original trade

/TrdaptRpt

0=New

0=Regular Trade

CDE345

ABC555

-

Replacement Trade

/TrdCaptRpt

0=New

0=Regular Trade

AABC215

-

-

Original Trade

  • @PackageID - In Trade cancel message, value points to @TrdID2 of the replacement trade.

  • /TrdCapRptSideGrp/@OrigTrdID - In Trade replacement message, value points to @TrdID2 of the original trade.




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