VOLUME 20 - BULLETIN #106
TO:
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ALL CLEARING MEMBERS
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FROM:
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BUSINESS SYSTEMS GROUP
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DATE:
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April 3, 2000
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SUBJECT:
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Spread Matching for Corn and Soybean Futures Contracts
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On Thursday, April 20, 2000, the Board of Trade Clearing Corporation (BOTCC®) will update the final reconciliation process to help facilitate the matching of spreads in Corn and Soybean futures contracts. Unmatched spreads containing a transaction type ‘6’ that have not matched 4 way, block quantity prior to the final reconciliation will be changed to transaction type ‘D’ and processed as differential spreads. Firms will find differential processing more accurate and see a reduction in unmatched spreads and misclears. For trades processed with a transaction type ‘D’, trade price will not be a critical match field but will be replaced by the calculated differential between the legs of the spread. The buy and sell legs of the spread will be grouped based on card/order number and processed as follows.
• 4-Way (broker to broker/ firm to firm), time bracket
• 4-Way
• 4-Way EQC
• Broker to broker, time bracket
• Broker to broker
• Broker to broker EQC
Spread trades that remain unmatched after the differential match process would be converted back to a transaction type ‘6’ and processed in the regular final reconciliation match routine. Additionally, the Matched Trade Report (CLR00122) and Daily Trade and Position Register (CLR00234) will indicate spread trades that match as a differential with a ‘D’ in the transaction type column (TT) and a ‘6’ in Entry Broker field.
Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
BOTCC is a registered trademark of the Board of Trade Clearing Corporation.
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