© 2010 CME Group. All rights reserved
CME Group – BMV
Electronic Trading Overview &
Customer On-Boarding
February 3rd, 2011
Partnership Overview
Customer Focused Partnership
Benefits for Customers, BMV, CME Group
Customers
• Access every major derivatives asset
class on CME Globex
• Safety of CME Clearing
BMV Group
• Leverage CME Group global distribution,
risk management expertise
Partnership
Benefits
• Leverage CME Group sales, marketing
and customer relationships
CME Group
• Broaden customer access and increase
trading volume of CME Group products
• Develop relationships with non-US
brokers and regulators
© 2010 CME Group. All rights reserved
4
Partnership Overview
MOU for joint efforts
in market
development
2-way Order Routing
for Derivatives
Long-Term
Strategic
Partnership
Board Level
Involvement
Equity Investment
1: Excludes MexDer customers from Mexico or Latin America; 30% gross revenue share of revenue for direct collocation customers
© 2010 CME Group. All rights reserved
5
Order Routing Overview
South to North
North to South
U.S.
Customer
Direct or Indirect
Relationship
Direct or Indirect
Relationship
Mexican
Customer
MexDer
Translation
CMEG
Clearing
Globex
CMEG
Translation
Asigna
MexDer
Seamless Access to Customers
© 2010 CME Group. All rights reserved
6
Customer On-Boarding:
South to North
Establishing a relationship with a CME Group
Clearing Member Firm
•
MexDer Members wishing to trade CME Group products must satisfy all of the appropriate US
regulatory requirements in order to be authorized to trade.
•
Mexican entities wishing to trade CME Group contracts must have an account established with a
CME Group Clearing Firm.
•
This firm is responsible for the settlement of all transactions with the CME Group Clearinghouse.
•
The Mexican entity may alternatively trade through an omnibus account at a CME Group Clearing
Firm set up by an intermediary.
•
Many MexDer clearers and brokers have pre-existing relationships with CME Group Clearing
Firms; therefore the process may also be facilitated for MexDer customers by their existing
MexDer Broker or Clearing Firm.
•
A list of CME Clearing Firms is available on the
http://www.cmegroup.com/tools-information/clearing-firms.html
•
For questions regarding establishing a relationship with a CME Group Clearing Member Firm, you
may also contact Global Account Management at CME Group: CME Group Global Account
Management 312 634 8700 or email globalaccountmanagement@cmegroup.com
© 2010 CME Group. All rights reserved
CME
Group
web
site
at:
8
Accessing CME products through a MexDer
Clearing or Trading Member
• New Customer would contact their MexDer Clearing member or MexDer Trading member and
request access to the CME market.
• MexDer Clearing member or MexDer Trading member will need to setup a CME clearing
member relationship. This relationship can be direct or indirect
• CME clearing member would work with CME Group and MexDer to provide access to the
new MexDer customer.
• The MexDer clearing member or MexDer trading member would provide this information to
(BMV contact) so they can setup the account in RTS. The setup would include account
number, iLink session, market data access markets.
• If a MexDer customer, chooses to establish a relationship with a CME Group Clearing Firm
independently, a list of CME Clearing Firms is available on the CME Group web site at:
http://www.cmegroup.com/tools-information/clearing-firms.html
© 2010 CME Group. All rights reserved
9
Electronic Trading Overview:
South to North
Order Routing Basics: MexDer to CME Group
BMV customers will be able to leverage their existing connectivity
to MexDer to trade CME Group products:
• All CME, CBOT, NYMEX and COMEX market data will be available via
MexDer connectivity
• Orders will route “South to North” from the customer’s MexDer connection
via a high speed international circuit to CME Globex
• All CME Group products clear at the CME Clearing House
• CME Group Clearing Firm relationship required
• Targeted launch early Spring 2011
© 2010 CME Group. All rights reserved
11
Available CME Group products
Asset Class
Product Name
Agriculture
Corn Futures
ZC
Agriculture
Corn Options
OZC
Energy
E-mini Natural Gas Futures
QG
Energy
Light Sweet Crude Oil Futures
CL
Equity Indexes
E-mini Dow ($5) Futures
YM
Equity Indexes
E-mini NASDAQ-100 Futures
NQ
Equity Indexes
E-mini S&P 500 Futures
ES
Equity Indexes
E-mini S&P 500 Options
ES
FX
British Pound Futures
6B
FX
E-mini Japanese Yen Futures
J7
FX
Euro FX Futures
6E
FX
Japanese Yen Futures
6J
FX
Mexican Peso Futures
6M
Interest Rates
10-Year U.S. Treasury Note Futures
ZN
Interest Rates
Eurodollar Futures
GE
Metals
Gold Futures
GC
Metals
Silver Futures
SI
© 2010 CME Group. All rights reserved
Globex
Symbol
12
South to North Connectivity: Order Routing to
CME Group via existing Line to MexDer
CMEG Mexico Globex
Hub
40 Mbps line
40 Mbps line
OR
MexDer
Infrastructure
Customer
MexDer
Broker/
Clearing
Member
Account
with
CMEG
Clearing
Firm
required
US FCM
Lines to MexDer
Mexico
© 2010 CME Group. All rights reserved
Globex
Credit
Controls
set by
CMEG
Clearing
Firm
U.S.
CMEG
Globex
Match Engine
Mapping of Mexder accounts with CME
accounts
•
Once the relation with a CME Clearing Firm is established, MexDer will
map the account information on the interfaces
•
The MexDer member will send orders to CME seamlessly
•
MexDer members will trade both MexDer and CME products from the
same “trading screen”
•
All CME trades will reach the correct account at the CME Clearing Firm
•
Clearing and settlement activities of CME products will be conducted by
the CME Clearing Firm
© 2010 CME Group. All rights reserved
14
Customers using the MexDer provided RTS
screen
Customers using the MexDer provided front end system (RTS screen) will not
require any additional certification
•
Key business functionality:
Order Types
•Market (with
protection)
•Limit
•Stop with
protection
•Stop Limit
•Market Limit
Order Qualifiers
•Day
•Good Till
Cancel (GTC)
•Good Till Date
(GTD
•Fill and Kill
(FAK)
Market Data
•Futures Book-Depth
Supported – Full
•Options Book-Depth
Supported – Full
•Implied Price and Quantity
Display
Advanced Functionality
•In-Flight Mitigation
(IFM)
•User Defined
Spreads
•Request for Quote
(RFQ)
•Indicative Prices
•Give-Ups
•
MexDer Members utilizing the RTS front end trading screen provided by MexDer will need a direct
connection to MexDer with Telmex as its provider.
•
Contacts at MexDer: For any assistance please contact José Miguel de Dios and Irma Gonzalez at
5342 9913 and 5342 9916 or josemd@mexder.com.mx and irmag@bmv.com.mx
© 2010 CME Group. All rights reserved
15
Customers who want access via the FIX API
4.2 interface
For customers who wish to use a non-exchange provided front-end or
proprietary systems, MexDer requires additional certification in order to
ensure they can correctly support CME Group products, Market Data and
order routing.
•
Key business functionality:
Order Types
•Market (with
protection)
•Limit
•Stop with
protection
•Stop Limit
•Market Limit
•
Order Qualifiers
•Day
•Good Till
Cancel (GTC)
•Good Till Date
(GTD
•Fill and Kill
(FAK)
Market Data
•Futures Book-Depth
Supported – Full
•Options Book-Depth
Supported – Full
•Implied Price and Quantity
Display
Advanced Functionality
•In-Flight Mitigation
(IFM)
•User Defined
Spreads
•Request for Quote
(RFQ)
•Indicative Prices
•Give-Ups
There are many options to connect to the testing or production environments, for
additional information - please refer to the document “Connecting to MexDer”.
© 2010 CME Group. All rights reserved
16
Customers who want access via the FIX API
4.2 interface
•
Connection specifications:
http://www.mexder.com/inter/info/mexder/avisos/Connecting%20to%20
MexDer.pdf
•
Link to documentation necessary for the APIs:
http://www.mexder.com/inter/info/mexder/avisos/RTD_FIX_API_Specifi
cation.pdf
•
Who to contact at the exchange for assistance?:
For assistance please contact Hector García and Irma Gonzalez at 5342 992
and 5342 9916 or hjgarcia@bmv.com.mx and irmag@bmv.com.mx
© 2010 CME Group. All rights reserved
17
Customers who want access via the FIX API
4.4 interface
Customers who wish to use a non-exchange provided front-end or
proprietary systems, MexDer requires additional certification in order to
ensure they can correctly support CME Group products, Market Data and
order routing. Please contact Hector García or Irma Gonzalez at 5342 9927
or 16 for support on the certification process.
•
MexDer will provide an API that supports the actual functionality that MexFix
supports for trading MexDer products
•
Key business features:
Order Types
•Limit
© 2010 CME Group. All rights reserved
Order Qualifiers
•Day
Market Data
•Futures Book-Depth
Supported – Full
•Options Book-Depth
Supported – Full
Advanced Functionality
•Request for Quote
(RFQ)
•Give-Ups
18
Electronic Trading on CME Globex
CME Globex Hub in Mexico
In conjunction with the strategic partnership between CME Group
and BMV, CME Group will launch a new telecommunications hub in
Mexico City Region targeted for 2011:
• Provides new CME Group hub in the Mexico City region
• Standard, redundant international hub
• Access to all CME Group and Partner Exchange products
• Facilitates connectivity and reduces latency to the Globex network for Mexican
and Latin American customers
© 2010 CME Group. All rights reserved
Connection to CME Group Hub in Mexico via
Dedicated Lines
CMEG Mexico
Globex Hub
40 Mbps line
Globex
Credit
Controls
set by
CMEG
Clearing
Firm
US FCM
Customer
MEXICO
© 2010 CME Group. All rights reserved
Account
with
CMEG
Clearing
Firm
required
U.S.
CMEG
Globex
Match Engine
CME Globex Order Routing Messaging
New Order Filled
New Order
Customer
OR
Order Acknowledgement
Fill
Broker
© 2010 CME Group. All rights reserved
CME
Globex
Match Engine
CME Globex Order Routing Messaging
New Order with Partial Fills
New Order (10 contracts)
Order Acknowledgement
Customer
OR
Partial Fill (2)
Broker
Partial Fill (2)
Partial Fill (6)
© 2010 CME Group. All rights reserved
CME
Globex
Match Engine
CME Globex Order Routing Messaging
Order Modification
New Order
Order Acknowledgement
Customer
CME
Globex
Match Engine
OR
Order Cancel/Replace (Modification)
Broker
Cancel/Replace Acknowledgement
Fill
© 2010 CME Group. All rights reserved
CME Globex Order Routing Messaging
Order Modification with Partial Fill
New Order
Order Acknowledgement
Customer
OR
Partial Fill
Broker
Order Cancel/Replace (modification)
Cancel/Replace Acknowledgement
Fill
© 2010 CME Group. All rights reserved
CME
Globex
Match Engine
CME Globex Order Routing Messaging
Order Cancellation
New Order
Customer
Order Acknowledgement
OR
Order Cancel
Broker
© 2010 CME Group. All rights reserved
Order Cancellation Acknowledgement
CME
Globex
Match Engine
CME Group Trade Cancellation Policy
If an order execution occurs at a price not representative of the
current market, the CME Group Globex registered contact may
call the GCC to request to have the trade reviewed
• To invoke the policy a Globex registered contact** must call the GCC
(Globex Control Center) within eight minutes of the error trade
• CME Group Clearing Member firms will call on behalf of customers who
are not GCC authorized contacts
• In order to cancel or price adjust a trade, the GCC determines if the trade
is within the Non-Reviewable Range (if it is, the trade stands)
• If a trade is outside the Non-Reviewable Range, the GCC messages all
CME Globex registered contacts via Targeted Messaging and the quote
vendor network alerting that the trade has been cancelled or adjusted
**Only CME Group Clearing Firms may request Globex Control Center registered contact status on
behalf of their customers. Please refer any questions to your CME Group Clearing Firm
© 2010 CME Group. All rights reserved
27
Electronic Trading Overview:
North to South
Order Routing Basics: CME Group to MexDer
CME Group customers will be able to leverage their existing
connectivity to CME Globex to trade MexDer products:
•
All MexDer interest rate and equity index derivatives product market data
will be available on the CME Globex platform
•
Orders will route “North to South” from the customer’s CME Globex
connection via a high speed international circuit to MexDer’s matching
engine
•
All MexDer traded products clear at Asigna
•
Asigna Clearing Firm relationship required
•
Targeted launch in the second half of 2011
© 2010 CME Group. All rights reserved
29
North to South Connectivity: Order Routing to
MexDer via existing line to CME Globex
CMEG Mexico
Globex Hub
40 Mbps
line
40 Mbps line
OR
Lines to Globex
Customer
CME Globex
Infrastructure
Account
with
MexDer
Clearing
Firm
required
Asigna Clearing
Member
CMEG
Broker
US
© 2010 CME Group. All rights reserved
MexDer
Match Engine
MEXICO
Product Availability – MexDer products
•
Asset Class
Product Name
MexDer Symbol
Equity Indexes
IPC Futures
IPC
Equity Indexes
IPC Options
IP
FX
U.S. Dollar Futures
DEUA
FX
U.S. Dollar Options
DA
FX
Euro /Peso futures
EURO
Interest Rates
TIIE Futures
TE28
Interest Rates
CETE Futures
CE91
Interest Rates
M3 Bond Futures
M3
Interest Rates
M10 Bond Futures
M10
Interest Rates
M20 Bond Futures
M20
Interest Rates
2 Y TIIE Swap Futures
02
Interest Rates
10 Y TIIE Swap Futures
10
Inflation Indexes
UDI Futures
UDI
For more information about MexDer products go to:
http://www.mexder.com.mx/MEX/Futures_Contracts.html and
http://www.mexder.com.mx/MEX/Options_Contracts.html
© 2010 CME Group. All rights reserved
31
Comentarios Finales
© 2010 CME Group. All rights reserved