VOLUME 21 - BULLETIN #68
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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March 14, 2001
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SUBJECT:
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Modified Contra – Trade Id Match Expansion
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Beginning Wednesday, March 21, 2001, the Chicago Board of Trade will expand the Modified Contra (MCR) program to include the following financial futures contracts: U.S. Treasury Bond, Ten-Year U.S. Treasury Note, Five-Year U.S. Treasury Note, Two-Year U.S. Treasury Note, Ten Year Agency Note, Five Year Agency Note, Thirty Day Fed Funds, Long-Term Municipal Bond Index, Dow Jones Composite Average Index, Dow Jones Transportation Average Index, Dow Jones Utility Average Index, Kilo Gold, 100-Ounce Gold, 1000-Ounce Silver, and 5000-Ounce Silver. Additionally, the MCR program will expand to include Mortgage Back Futures when pit trading begins Friday, March 23, 2001. The program, currently in place for all Agricultural and Dow Jones Industrial Average futures contracts, provides for the use of a Trade ID (transaction identifier) in place of opposing firm and is designed to improve the efficiency of getting orders out of the pit on busy trading days.
TRADE ENTRY
Clearing provides a trade entry screen in OTIS (Selection 3A. Full Size Fields - Trade ID) to aid in entry of the alpha numeric Trade ID. This screen allows the entry of alpha/numeric data in the opposing firm field without the requirement to shift. The Trade ID may be any combination of 2 or 3 alpha/numeric characters but it may not be all alpha or all numeric.
MATCH PROCESSING
During the intra-day match process, Trade ID will replace opposite firm as a critical match field. It is very important that the opposite broker be entered correctly, as the trades will be matched based on the criteria of member, Trade ID, price, and quantity. At the end of the day, unmatched trade records that have a Trade ID can be matched with a non-Trade ID record in the member-to-member match during the final 7:00 p.m. reconciliation. In addition, trades can match Trade ID to Trade ID at the final reconciliation. To prevent misclears, which can occur as broker is ignored in this match, it is important for exchange members to use unique identifiers for each transaction. To identify these trades on the Daily Trade and Position Register, the Trade ID will be populated in the ENTR BKR field.
REPORTS
On the Unmatched Trades report, Trade ID will be populated in the ENTR BKR field and the opposite firm field will be populated with the opposite brokers PCM. Preliminary trade listings will populate Trade ID in the opposite firm field. The Daily Trade and Position Register will populate the ENTR BKR field with the Trade ID.
MQM REAL TIME FEED
Duplication records received via MQM Real Time Feed will contain the Trade ID in the Opposite Clearing Member Firm Field (pos. 76-80.) of the TREX Main Block.
REGISTER DATA FILE
The Trade ID will be populated in the matched Opposite Broker of the Register Data file (col. 91-93).
Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
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