CME Group – BMV Electronic Trading Overview & Customer On-Boarding February 3rd, 2011.

CME Group – BMVElectronic Trading Overview & Customer On-Boarding

February 3rd, 2011

Partnership Overview

© 2010 CME Group. All rights reserved

CME G

roup C

ustomers

BMV Group

Partnership Benefits

• Broaden customer access and increase trading volume of CME Group products

• Develop relationships with non-US brokers and regulators

• Leverage CME Group global distribution, risk management expertise

• Leverage CME Group sales, marketing and customer relationships

CME Group

BMV Group

• Access every major derivatives asset class on CME Globex

• Safety of CME Clearing

Customers

Customer Focused PartnershipBenefits for Customers, BMV, CME Group

3


Partnership Overview

4

1: Excludes MexDer customers from Mexico or Latin America; 30% gross revenue share of revenue for direct collocation customers

2-way Order Routing for Derivatives

Board Level Involvement

MOU for joint efforts in market

development

Equity Investment

Long-Term Strategic

Partnership

© 2010 CME Group. All rights reserved 5

Order Routing Overview

South to North

Seamless Access to Customers

Mexican Customer C

ME

Group

Market D

ata

Order

Messages

MexDer Translation C

ME

Group

Market D

ata

Order

Messages

GlobexCMEG

Clearing

North to South

U.S. Customer

MexD

er

Market D

ata

Order

Messages

CMEG Translation

MexD

er

Market D

ata

Order

Messages

MexDerAsignaD

irect

or

Indi

rect

R

elat

ions

hip

Dire

ct o

r In

dire

ct

Rel

atio

nshi

p

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

7© 2010 CME Group. All rights reserved


Available CME Group products

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Asset Class Product Name Globex Symbol

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


Customer

MexDer Infrastructure

CMEG Mexico Globex Hub

MexDer Broker

Lines to MexDer

South to North Connectivity: Order Routing to CME Group via existing Line to MexDer

CMEGGlobex

Match Engine

U.S.Mexico

US FCM

Account with CMEG Clearing Firm required

40 Mbps line

40 Mbps line

OR

Globex Credit Controlsset by CMEGClearing Firm

Customer On-Boarding: South to North


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 features: bullets listed to be provided by MexDer/RTS

• How to connect for Order Entry and Market data: Describes how clients will connect to MexDer for this option (steps below) MexDer - please define/add details

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.

• Additional information: This section will contain links to additional technical documents that RTS has for screens – MexDer please provide

• Contacts at MexDer: necessary contacts that can be leveraged for any questions-*****

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Customers who want access via the FIX API 4.2 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.

• Key business features: bullets provided by MexDer/RTS

• Certification to MexDer API (requirements, steps, etc.)

• Functional impacts (documents and links to appropriate docs)

• How clients will connect to MexDer for Order Entry and Market Data

• Technical specifications

• Links to documentation necessary for the APIs

• Who to contact at the exchange for assistance (names, numbers, email)

• Other topics that will need to be covered?

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Customers who want access via the FIX API 4.4 interface (will this even be available for the event?)

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 features: bullets provided by MexDer/RTS

• Certification to MexDer API (requirements, steps, etc.)

• Functional impacts (documents and links to appropriate docs)

• How clients will connect to MexDer for Order Entry and Market Data

• Technical specifications

• Links to documentation necessary for the APIs

• Who to contact at the exchange for assistance (names, numbers, email)

• Other topics that will need to be covered?

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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 products clear at Asigna

•Asigna Clearing Firm relationship required

•Targeted launch in the second half of 2011



Customer

CME GlobexInfrastructure


CMEG Broker

Lines to Globex

North to South Connectivity: Order Routing to MexDer via existing line to CME Globex

MexDerMatch Engine

MEXICOUS

Asigna Clearing Member

Account with MexDerClearing Firm required

40 Mbps line

40 Mbps line

OR

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


Product Availability – MexDer products

***Please provide a list of the products that will be available via North to South Order Routing***

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Customer


Connection to CME Group Hub in Mexico via Dedicated Lines

Redundan

t

Custom

er lin

es

CMEGGlobex

Match Engine

U.S.MEXICO

US FCM

Account with CMEG Clearing Firm required

40 Mbps line

Globex Credit Controlsset by CMEGClearing Firm


CME Globex Order Routing Messaging

New Order Filled

Customer

Broker

OR

CMEGlobex

Match Engine

New Order

Order Acknowledgement

Fill



New Order with Partial Fills

Customer

Broker

ORCME

Globex Match Engine

New Order (10 contracts)


Partial Fill (2)

Partial Fill (2)

Partial Fill (6)



Order Modification

Customer

Broker

ORCME

Globex Match Engine

New Order


Cancel/Replace Acknowledgement

Fill

Order Cancel/Replace (Modification)



Order Modification with Partial Fill

Customer

Broker

ORCME

Globex Match Engine

New Order


Cancel/Replace Acknowledgement

Fill

Order Cancel/Replace (modification)

Partial Fill



Order Cancellation

Customer

Broker

ORCME

Globex Match Engine

New Order


Order Cancellation Acknowledgement

Order Cancel


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


CME Group – BMV Electronic Trading Overview & Customer On-Boarding February 3rd, 2011.

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Transcript of CME Group – BMV Electronic Trading Overview & Customer On-Boarding February 3rd, 2011.