New UDS Lifecycle - Daily With Extension
To optimize options trading and make instrument management easier, CME Globex will implement a new User-Defined Spread (UDS) lifecycle for options on Equity Index futures - Daily with Extension.
UDS Combos on eligible products will be created with the last trade datetime (LTD) equal to 1600 Central time (CT) on the day of creation; and they will be eligible for LTD extensions based on Good Till Cancel (GTC) and Good Till Date (GTD) orders.
Currently, all UDS on CME Globex follow one of two lifecycles:
Daily, where the LTD is set to the current day
Weekly with Extension, where the LTD is set to the end of the week but can be extended based on GTC and GTD orders.
This change only applies to UDS Combos on the products listed below. UDS Combos and UDS for futures on all other products will continue to use the existing Weekly with Extension lifecycle. Covered UDS and CBOT Treasury Futures Tail Spreads are also out of scope and will continue to use the Daily lifecycle.
Contents
Revision History
Date | Description |
|---|---|
Thursday, July 24, 2025 | Added graphic workflows for current and new lifecycles. |
Wednesday, July 23, 2025 | Initial publication of this pending client impact topic. |
Key Events and Dates
Date | Milestone |
|---|---|
Sunday, August 3, 2025 | New Release launch for all in-scope UDS product groups |
Sunday, September 14, 2025 | Production launch of phase 1 UDS product groups |
Sunday, September 21, 2025 | Production launch of phase 2 UDS product groups |
Glossary
User-Defined Spreads (UDS): a multi-legged instrument created by a client for trading on the CME Globex platform.
UDS Combo: a spread of option outrights and/or option spreads.
Covered UDS: a spread with both options and futures legs.
UDS for Futures: a spread of future outrights and/or future spreads.
Recursive UDS: a spread with at least 1 leg that is a UDS.
Lifecycle: the logic used to determine the last trade datetime (LTD) for a UDS, and whether the LTD can be modified.
Testing and Certification
Certification is not required for this change.
Client System Impacts
Currently, UDS lifecycles on CME Globex fall into one of two types - either Daily, or Weekly with Extension. This initiative introduces a third type, Daily with Extension.
The UDS' last trade datetime (LTD) cannot exceed the LTD of any of the legs. When the LTD of any leg occurs before the LTD of the UDS, the UDS' LTD will be set equal to the LTD of the nearest leg.
Lifecycle Type | Description | GT Orders and Lifecycle Extension | UDS Types |
|---|---|---|---|
Daily | Instrument is only listed for one day; the instrument LTD is equal to 1600 CT on the day the instrument is created. | Good Till Cancel (GTC) and Good Till Date (GTD) orders are not allowed and are rejected. | Covered UDS UDS CBOT Treasury Futures Tail Spreads |
Weekly with Extension | Instrument is initially listed for current week; the instrument LTD is equal to 1600 CT on the first Friday after the instrument is created. | GTC and GTD orders are allowed. If a GTC/GTD order is still resting in the book when the market closes on Friday, then the instrument will be modified and assigned a new LTD is equal to 1659 CT on the next following Friday. | UDS Combos on options UDS Combos on futures |
NEW Daily with Extension | Instrument is initially listed for one day; the instrument LTD is equal to 1600 CT on the day the instrument is created. | GTC and GTD orders are allowed. If CME Globex observes a GTC/GTD order resting in the book, the LTD will be extended to 1659 CT on Friday. If a GTC/GTD order is still resting in the book when the market closes on Friday, then the instrument will be modified again and assigned a new LTD equal to 1659 CT on the next Friday. | UDS Combos on options - Equity asset class |
Lifecycle Selection Workflows
Current Lifecycles
Lifecycles with Daily with Extension Option
Messaging Impacts
There are no new messaging impacts with this launch.
New Functionality
UDS Combos using the new Daily with Extension lifecycle will be initially created with the last trade datetime (LTD) equal 1600 CT on the day the instrument is created.
CME Globex will scan all in-scope UDS Combo instruments on an hourly basis. Any UDS Combo with a resting GTC/GTD order at the time of the scan will be immediately modified to extend the LTD to 1659 CT on Friday. CME Globex will publish an MDP 3.0 - Market Data Security Definition - Spreads message with tag 980-SecurityUpdateAction=M with the new Friday LTD in repeating group 864, 865=7 and 1145 equal to the new LTD.
GTC/GTD orders that are not observed during a scan, due to being entered, filled and/or cancelled within a single scan cycle, will not trigger the lifecycle extension.
The last scan will occur about 30 minutes before the market closes. Any GTC/GTD orders entered during this time will not trigger the lifecycle extension.
If no GTC/GTD orders are resting during the scan, the UDS Combo will be removed CME Globex at that day’s market close.
Any resting GTC/GTD orders will be Eliminated when the UDS Combo is removed from CME Globex.
After the close on Friday, CME Globex will again scan all UDS Combo instruments. Any UDS Combo with a resting GTC/GTD order will be modified to extend the LTD to 1659 CT on the following Friday.
This pattern can continue up until the earliest LTD of any leg. In no case will a UDS persist after the LTD of any leg.
Scenarios
All times are presented in Central time (CT).
Scenario | Market Activity - GTC/GTD Orders | Last Trade Date |
|---|---|---|
UDS created on Monday at 0745 with LTD equal to Monday at 1600. | No GTC/GTD order is entered. | UDS is eliminated at 1600 on the current day. |
UDS created on Monday at 0745 with LTD equal to Monday at 1600. | GTC/GTD order is entered and is resting in the book during an hourly CME Globex scan. | UDS is immediately modified with LTD set to Friday at 1659, after the market close. |
UDS created on Monday at 0745 with LTD equal to Monday at 1600. | GTC/GTD order is entered but is cancelled or filled before the hourly CME Globex scan occurs. | UDS is eliminated at 1600 on the current day. |
UDS created on Monday at 0745 with LTD equal to Monday at 1600. LTD for Leg 1 is 1600 on Wednesday. | GTC/GTD order is entered and is resting in the book during an hourly CME Globex scan. | UDS is immediately modified with LTD equal to Wednesday at 1600. |
UDS created on Monday at 0745 with LTD equal to Monday at 1600. LTD for Leg 1 is 1600 on Wednesday. | GTD order with Thursday expiration is entered. | GTD order will be rejected because the ExpireDate of the order exceeds the LTD of Leg 1. Fix tag 58=Tag ExpireDate (432) beyond UDS COMBO earliest leg expiration. 'Order's GTD ExpireDate: 'YYYYMMDD'' |
UDS created on Friday at 0745 with LTD equal to Friday at 1600. | GTC/GTD order is entered and is resting in the book during an hourly CME Globex scan. | UDS is immediately modified with LTD set to Friday at 1659, after the market close. If GTC/GTD order is still resting after the market closes on Friday, the UDS Combo will be updated again over the weekend with LTD set to the following Friday at 1659, after the market close. |
UDS 1 created on Monday at 0745 with LTD equal to Monday at 1600. Recursive UDS created on Monday at 0800 with LTD equal to Monday at 1600. UDS 1 is a leg of Recursive UDS. | GTC/GTD order is entered for UDS 1 and is resting in the book during an hourly CME Globex scan. No GTC/GTD order is scanned in the Recursive UDS. | UDS 1 is immediately modified with LTD set to Friday at 1659, after the market close. Recursive UDS is eliminated at the current day market close. |
UDS 1 created on Monday at 0745 with LTD equal to Monday at 1600. Recursive UDS created on Monday at 0800 with LTD equal to Monday at 1600. UDS 1 is a leg of Recursive UDS. | GTC/GTD order is entered for Recursive UDS and is resting in the book during an hourly CME Globex scan. No GTC/GTD order is scanned in UDS 1. | Both UDS are immediately modified with LTD set to Friday at 1659, after the markets close. If GTC/GTD order is still resting after the market closes on Friday, both UDS will be updated again over the weekend with LTD set to the following Friday at 1659, after the market close. |
UDS created on Monday at 0745 with LTD equal to Monday at 1600. Friday is a trading holiday. | GTC/GTD order is entered and is resting in the book during an hourly CME Globex scan. | UDS is immediately modified with LTD set to Friday at 1659. |
Product Scope
The new Daily with Extension lifecycle type will be applied to UDS Combos in the following product groups.
UDS Destination Group | Product | Phase |
|---|---|---|
2V | E-mini Nasdaq-100 Options | 1 |
NF | Micro E-mini Nasdaq-100 Options | 1 |
1V | E-mini S&P 500 Options | 2 |
3S | S&P 500 Annual Dividend Options | 2 |
EN | Micro E-mini S&P 500 Options | 2 |
7P | E-mini S&P 600 SmallCap Options | 2 |
R5 | E-mini Russell 2000 Options | 2 |
3U | Dow Jones U.S. Real Estate Index Options | 2 |
M5 | E-mini Dow Jones Industrial Average Index Options | 2 |
3B | E-mini Financial Select Sector Options | 2 |
3D | E-mini Industrial Select Sector Options | 2 |
3H | E-mini Energy Select Sector Options | 2 |
3K | E-mini Technology Select Sector Options | 2 |
3M | E-mini Health Care Select Sector Options | 2 |
3Q | E-mini Utilities Select Sector Options | 2 |
8V | E-mini S&P MidCap 400 Options | 2 |
Partner Exchange Impacts
This change does not impact Partner Exchange markets on CME Globex.
Contact Information
For technical development support, contact Certification Support for Electronic Trading (CSET).
For production requests, please contact the Global Command Center (GCC).
For all other inquiries, please contact Global Account Management (GAM).
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