cme asset management and banking user guide

CME® Asset Management and Banking User Guide

October 2007

TABLE OF CONTENTS

1.0 INTRODUCTION................................................................................................... 2

2.0 GETTING STARTED ............................................................................................ 2 2.1. SECURITY REQUIREMENTS ............................................................................. 2 2.2. MAIN FUNCTIONS - ASSET MANAGEMENT & BANKING SYSTEM......................... 2 2.3. ACCESSING CLEARING 21® ASSET MANAGEMENT & BANKING SYSTEM ........... 4

3.0 PLEDGING COLLATERAL – ENTERING TRANSACTIONS.............................. 4 3.1. PLEDGING TREASURY SECURITIES.................................................................. 4 3.2. PLEDGING IEF (INTEREST EARNING FACILITIES).............................................. 9 3.3. PLEDGING AN ORIGINAL LETTER OF CREDIT.................................................. 11 3.4. AMENDING AN EXISTING LETTER OF CREDIT.................................................. 13 3.5. PLEDGING CASH, CURRENCY, OR STOCK...................................................... 16

4.0 WITHDRAWAL TRANSACTIONS ..................................................................... 17 4.1. VIEWING WITHDRAWAL ACCOUNT INFORMATION ........................................... 18 4.2. UPDATING WITHDRAWAL INSTRUCTIONS ....................................................... 19 4.3. ADDING NEW WITHDRAWAL INSTRUCTIONS................................................... 20 4.4. DELETING A WITHDRAWAL INSTRUCTION....................................................... 22 4.5. ENTERING A WITHDRAWAL TRANSACTION FOR ALL SECURITIES AND IEF ....... 23 4.6. ENTERING A WITHDRAWAL TRANSACTION FOR CASH..................................... 25

5.0 ASSET AND SETTLEMENT INQUIRY............................................................... 27 5.1. VIEWING CASH ON DEPOSIT FOR PERFORMANCE BOND AND SECURITY DEPOSIT REQUIREMENTS ............................................................................. 28 5.2. VIEWING US GOVERNMENT SECURITIES PLEDGED FOR PERFORMANCE BOND AND SECURITY DEPOSIT REQUIREMENTS ............................................ 29 5.3. VIEWING LETTERS OF CREDIT PLEDGED FOR PERFORMANCE BOND .............. 31

Client Management Training Services 2

1.0 Introduction The Asset Management and Banking system permits firms to enter pledge and withdrawal instructions for collateral and review the status of those transactions on-line. It eliminates use of paper-based transactions for collateral substitutions.

Firms can submit Treasury Securities, Letters of Credit, Stock, IEF, foreign currency, US dollars and other approved collateral to: • Replace the USD cash debited directly from their performance bond accounts and/or

existing letters of credit/Treasury securities/approved collateral on deposit. • Anticipate a performance bond call for core performance bond requirements to be

credited to the appropriate Clearing Organization account.

2.0 Getting Started 2.1. Security Requirements

To request access to the Asset Management & Banking System, fax an On-Line System Access Request Form to Customer Support Group at (312) 338-2626. (Blank forms are available on the Client Management web site.) Please allow 24-48 hours for processing.

2.2. Main Functions - Asset Management & Banking System • Enter Asset Management Transactions • View Assets on Deposit

The screens which contain this data are accessed via the Asset Management Main Menu and are described as follows: • Transactions allows you to enter data notifying the CME Clearing of your intent to

pledge, amend or withdraw assets (collateral). On the Daily Transaction List screen, you can review and verify the status of all transactions entered on that business day.

• Withdrawal Instructions allows you to enter default withdrawal bank account numbers and special instructions.

• Assets on Deposit lists individual asset groups for each individual asset type on deposit.

• Asset Summary displays the sub-totaled values for each asset group. • Currency Summary displays the sub-totaled values for each currency type, both

foreign and domestic. • Currency Requirements displays both summary and detailed performance bond

requirements in US dollars and across all foreign currencies. • Settlement Variation displays both summary and detailed variation requirements for

each settlement session. • Banking Requirements displays the net pay or collect value for performance bond

for a particular performance bond cycle. • Banking Instruction List displays account and bank location information for

withdrawal instructions. • Bank List displays the list of banks approved for sending or receiving collateral to

CME Group safekeeping accounts.


• Interest Rate Maintenance (IEF) refers to the systems and procedures CME Group has developed to support the acceptance of money market mutual fund shares at CME Group. Firms can add, withdraw, or transfer IEF funds.

• Clr Org Confirm/Reject is used by CME Clearing to indicate whether the transaction has been confirmed or rejected.

Selecting Criteria for Inquiry or Entry

Once you select a screen or function, the data is displayed according to the criteria you have selected from the various List Boxes in the Account Selection window. • To enter selection criteria, you must click on the small down arrow key located next

to the list box, to reveal the criteria available for that list box. • To select an item in the list box, just click on the name and it will be highlighted in

reverse color. Repeat this procedure when entering any selection criteria.

The C21 Banking and Asset Management System uses a standard set of interactive screen tools. The common List Boxes that will be displayed on each of the Banking and Asset Management System screens are as follows: • Asset Account - The clearing member firm's asset account number - "###". This

field contains a list of the firm's Class A clearing number and any affiliate or cross-margin firm numbers.

• Creation Date - The system defaults to the current business date. However, you can view the status of assets and settlement requirements for the past four business days.

• Currency - US dollar or CME Group accepted foreign currency. • Origin - Customer segregated funds “CSEG” or Non-segregated funds (house)

“NSEG” or Customer Non-Segregated funds “CNSEG”. Note: CNSEG is only used for CME Auction Markets.

• Asset Type - Collateral accepted by the CME Group includes: Cash "CASH", Letters of Credit "LOC", US Treasury Securities "TBILL,” “TNOTE,” “TBOND" and Canadian Treasury Securities, “C-BILL,” “C-BONDS,” Interest Earning Facility “IEF” and Stock. A complete listing may be obtained from the Risk Unit of CME Clearing.

• Account Type - Performance Bond “PB” or Security Deposit ” SECR.” • Bus Func - Business functions including clearing “CLR,” Mutual Offset with SIMEX

“MOSSX,” Security Deposit “SECR,” and Cross-margining with the OCC “XMOCC.”


2.3. Accessing Clearing 21® Asset Management & Banking System To access the Clearing 21 ® Asset Management & Banking System, complete the following steps:

Log on to the CME Connect at http://connect.cme.com. The Logon window will display. Enter your existing CME Connect ‘username’ and ‘password’. Ensure the CME Portal product pulldown option has been selected (CME Portal

should automatically appear in the pulldown box). Click on the Sign In button. The CME Application tab will appear. Click on the Asset Management & Banking application. The main Asset

Management & Banking screen will appear. Begin by clicking on the down arrow-key next to the Select a Product box to

display list of products. Click on Asset Management & Banking from this list of main product types.

Click on GO next to the Select a Product box. The main menu for the contract will display.

3.0 Pledging Collateral – Entering Transactions 3.1. Pledging Treasury Securities

This section provides detailed steps for entering the required information to notify the CME Group of the transfer of approved $US and Foreign Treasury securities to CME Group performance bond safekeeping accounts. (For the complete listing of all approved collateral for performance bond and security deposits, please refer to Chapter 5 of the CME Clearing Manual of Operations.)

To submit Treasury securities notification, firms must complete the following steps by 10:30 A.M. Central Standard Time: • Select the Asset type. • Select the settlement bank. • Select the CUSIP or ISIN (Canadian) number. • Enter maturity and par value data. • Allocate the par value to CME Group. • Save the entry.


1. Select Transactions from the menu. The Asset Management Daily Transaction List screen will display.

2. Click on the New button. The Asset Type Selection screen will display.

3. Select the desired Asset (i.e.TBILL, TBOND, IEF, LOC, etc.) that you will pledge to the CME Group from the Asset Type drop-down list box. Then click OK. The Transaction Type Selection screen will display.

4. Select DEPOSIT from the Transaction Type drop-down list box. Then click OK. The Securities Transaction Maintenance screen will display.

5. The Account Type will default to PB (performance bond). If you are pledging for a security deposit, select SECR (security deposit) from the Account Type drop –down list box


6. Select either the CSEG (customer-segregated funds), NSEG (non-customer segregated/house) or *CNSEG (customer non-segregated funds), from the Origin drop-down list box. If the Treasury Security is to be pledged for Security Deposit, select origin: NSEG. *CNSEG is only for CME Auction Markets.

7. Select the appropriate business function, i.e., CLR (clearing) from the Bus Func (business function) drop-down list box. If the Treasury Security is to be pledged for Security Deposit, select SECR, or if the Treasury Security is to be pledged for cross-margining with the OCC, select XMOCC.

8. The Currency field will default to USD. If you are pledging a Canadian bond, select CAD from the Currency drop-down list box.

9. Click on the Bank button. The Bank Selection screen will display the list of all eligible settlement banks.

10. To choose the bank that will transfer the securities to CME Group, click on the bank name and press the Select button. The Securities Transaction Maintenance screen will reappear with the selected bank displayed.


11. In the Securities Transaction Maintenance screen, click on the CUSIP button to display the list of US Treasury Securities. The Domestic Securities List screen will display. For Canadian Bonds, click on the ISIN button. The Canadian Securities List screen will display.

Note: The list of valid CUSIP numbers is very long. As a result, only nine CUSIP numbers can be displayed at a time. Click on the side bar down arrow to view additional CUSIPs.


12. Find the appropriate security, click on the valid CUSIP number, and then click on the Select button. The Coupon Rate and Effective Date fields will automatically update on the Securities Transaction Maintenance screen.

13. In the Par Amount Field, enter the total par value of the asset. It is not necessary to enter commas or cents signs. For example, a par value of $2,500,000.00, can be entered simply as 2500000.

14. The Effective Date field will default to the current business date. If this asset is being pledged for a different effective date, enter the new date in the MM/DD/YY format (i.e. 06/21/05).

15. Click on the Allocate button. The Asset Trans Allocation Maintenance screen will appear.

16. Click on CME in the Allocated Par CO column. 17. In the Current Allocations window, click on the Allocate All button. The Net Par and

Allocated Par Amounts will be updated to reflect the new totals for that particular asset.

18. Click on OK. The Securities Transaction Maintenance screen will re-display. 19. If you do not have another asset of this type to pledge, click on the Save button. The

system will be updated, and will return to the Daily Transactions List screen. If you have more Treasury Securities to pledge, click on the Save/Continue button. Your pledge transaction will be saved, but the Securities Transaction Main screen will remain for the entry of more transactions.


20. To exit, click on Close in the Asset Management Menu at the bottom of the left hand margin.

3.2. Pledging IEF (Interest Earning Facilities) The steps for pledging the IEF products are similar to the steps for pledging treasury securities, but you will select one of the IEF asset types and the entry screen will be slightly different. This section provides detailed steps for entering the required information to notify the designated Clearing Organization of the transfer of approved IEF funds to CME Group performance bond safekeeping accounts. (For complete details in regard to the pledging of collateral for performance bond, please refer to Chapter 5 of CME Clearing Manual of Operations.)

To submit IEF and IEF-2 notification, firms must complete the following steps by 11:00 A.M. Central Standard Time: • Select one of the IEF, IEF-2 or IEF-3 Asset types. • Select a transaction type of Deposit. • Select the Bank. • Enter a par value. • Allocate the par value to CME Group. • Save the entry.

1. Select Transactions from the menu. The Daily Transactions List screen will display.


3. Select IEF from the Asset Type drop-down list box. Then click OK. The Transaction Type Selection window will display.


4. Select DEPOSIT (For IEF-3, select TFR-Deposit.) from the Transaction Type drop-down list box. Then click OK. The IEF Transaction Maintenance screen will display.

5. The Account Type field will default to PB (performance bond). 6. The Origin field will default to CSEG (customer-segregated funds.) Select either the

CSEG, NSEG or CNSEG origin. 7. The Bus Func (business function) field will default to CLR. 8. The Currency field will default to USD. 9. Click on the Bank button. The Bank Selection screen will display the list of all

eligible settlement banks/institutions. 10. Click on the appropriate bank and then click on the Select button. 11. Enter the Par Amount in the Par Value field, and then click on the Allocate button.

The Asset Trans Allocation Maintenance screen will display.

12. Click on CME in the Allocated Par CO column. In the Current Allocations window, click on the Allocate All button. Then click on OK. The IEF Transactions Maintenance screen will re-display.

13. Click on the Save button. The system will return to the Daily Transactions List screen.


3.3. Pledging an Original Letter of Credit This section provides detailed steps for entering the required information to notify CME Clearing use of the submission of a new Letter of Credit, or an amendment to an existing Letter of Credit.

To submit a new Letter of Credit notification, firms must complete the following steps by 10:30 A.M. Central Standard Time. • Select the Letter of Credit (LOC) Asset Type. • Select the Deposit or Amendment Transaction Type. • Select the LOC bank. • Enter the LOC number. • Enter the Applicant (Customer's) name for pass-through LOCs. • Enter expiration date and par value data. • Allocate the par value to the appropriate Exchange (CME Group). • Save the entry.

Note: Amending/Withdrawing Letters of Credit: • Clearing member firms can amend a Letter of Credit to increase or reduce

performance bond collateral. If a Letter of Credit must be pledged for a different origin (customer seg vs. non-customer seg), the original Letter of Credit must be withdrawn (amended to a balance of zero), and a new Letter of Credit pledged in the new origin.

• To withdraw a Letter of Credit or a portion of a Letter of Credit, clearing firms must have their banks amend down the letter of credit to a value of zero.

1. Select Transactions from the menu. The Daily Transactions List screen will display.


3. Select LOC from the Asset Type drop-down list box. Then click OK. The Transaction Type Selection window will display.


4. Select DEPOSIT from the Transaction Type drop-down list box. Then click OK. The Letter of Credit Transaction Maintenance screen will display.

5. The Account Type field will default to PB (performance bond).

6. The Origin field will default to CSEG(customer-segregated funds). Select either the CSEG or NSEG (non-customer segregated/house) origin.

7. The Bus Func (business function) field will default to CLR.

8. The Currency field will default to USD.

9. Click on the Bank button. The Bank Selection screen will display the list of all eligible settlement banks/institutions.

10. Click on the appropriate bank, and then click on the Select button.

11. Enter the Letter of Credit Number, Par Amount, Expiration date, and Issue date. If this is a “pass through” LOC, check the box and then enter the Applicant’s (customer) name.

12. Click on the Beneficiaries button. The Letter of Credit Beneficiaries screen will display.


13. Click on CME as the clearing organization and then click OK. The screen will return to the Letter of Credit Maintenance screen.

14. Click on the Allocate button. The Asset Trans Allocation Maintenance screen will display.

15. Click on CME in the CO column and then click the Allocate All button. Then click on OK. The LOC Transaction Maintenance screen will re-display.


3.4. Amending an Existing Letter of Credit To amend an existing Letter of Credit on deposit with CME Clearing, firms must complete the following steps by 1:30 P.M. Central Standard Time. 1. Select Transactions from the menu. The Daily Transactions List screen will display.



3. Select LOC from the Asset Type drop-down list box. Then click OK. The Transaction Type Selection window will display.

4. Select AMENDMENT from the Transaction Type drop-down list box. Then click OK. The Letter of Credit List screen will display.

5. The Account Type field will default to PB (performance bond). 6. The Origin field will default to CSEG. Select either the CSEG (customer-segregated

funds) or NSEG (non-customer segregated/house) origin.


7. The Bus Func (business function) field will default to CLR. 8. The Currency field will default to USD. 9. Click on the specific LOC that you want to amend. Then click on the Select button.

The Letter of Credit Transaction Maintenance screen will display.

10. Enter the new (amended) information for the Letter of Credit (i.e. new expiration date or Par Amount.)

11. Click on the Allocate button. The Asset Trans Allocation Maintenance screen will display.

12. Click on CME in the CO column, and then click the Allocate All button. Then click on OK. The LOC Transaction Maintenance screen will re-display.



3.5. Pledging Cash, Currency, or Stock This section provides detailed steps for entering the required information to notify CME Clearing of the submission of new currency or stock to meet performance bond requirements.

To pledge one of these assets, firms must complete the following steps by 11:30 A.M. Central Standard Time. • Select the Asset Type. • Select the Deposit Transaction Type. • Select the Bank. • Enter expiration or maturity date and par value data. • Allocate the par value to the appropriate Exchange (CME Group). • Save the entry.

1. Select Transactions from the menu. The Daily Transaction List screen will display.

2. Click on the New button. The Asset Type Selection screen will display. 3. Select the appropriate Asset Type from the drop-down list box. Then click OK. The

Transaction Type Selection window will display.

4. Select DEPOSIT from the Transaction Type drop-down list box. Then click OK. The Transaction Maintenance screen for that asset will display.

5. The Account Type field will default to PB (performance bond).


6. The Origin field will default to CSEG. Select either the CSEG (customer-segregated funds) or NSEG (non-customer segregated/house) origin.

7. The Bus Func (business function) field will default to CLR. 8. The Currency field will default to USD. 9. Click on the Bank button. The Bank Selection screen will display the list of all

eligible settlement banks/depository trust institutions. 10. Click on the appropriate institution and then click on the Select button. If the Asset

Type is Stock, go to the next step. If it is Cash or Currency, skip to step 13. 11. Click the Stock button. The Stock CUSIP List screen will display. 12. Click the appropriate stock from the list and then click Select. 13. Enter the new or amended Par Value and if applicable, expiration date. 14. Click on the Allocate button. The Asset Trans Allocation Maintenance screen will

display. 15. Click on CME in the Allocated Par CO column and then click on the Allocate All

button. Then click OK. The Transaction Maintenance screen will re-display. 16. Click on the Save button. The system will return to the Daily Transactions List

screen.

4.0 WITHDRAWAL TRANSACTIONS Clearing Firms may wish to withdraw excess collateral or replace existing IEF, Treasury securities, Letters of Credit or other approved CME Group collateral for performance bond. Firms are notified of an excess performance bond account balance via the CME Group SPAN Recap Ledger, the Settlement Requirement screens in the C21-Banking and Asset Management system, and the C21-Settlement System.

You will find withdrawal account information already entered in this system by CME Clearing. However, it is the clearing member firm that is responsible for maintaining accurate data. As a result, you should review and update your withdrawal instructions as needed BEFORE attempting a withdrawal transaction.


This section provides detailed steps for viewing, updating, adding, and deleting the withdrawal instructions for your firm. It also has instructions for requesting a withdrawal of cash/currency and treasury security or other approved assets.

To withdraw an asset, the firm must submit the appropriate data on the Withdrawal Maintenance screen for the particular asset by 11:30 A.M. Central Standard Time Furthermore, the firms must have valid default withdrawal instructions in the system for every asset type

4.1. Viewing Withdrawal Account Information 1. On the Asset Management Main Menu, select Withdrawal Instructions. The

Withdrawal Instruction List screen will display.

2. In the Account Selection section of the window, select the appropriate asset account (clearing firm) number from the Asset Account drop-down list box.

3. Select either CSEG (customer segregated funds) or NSEG (non-customer segregated/house) origin from the Origin drop-down list box.

4. Select either PB (performance bond) or SECR (security deposit) from the Account Type drop-down list box.

5. Select the appropriate business function [i.e. CLR (clearing)] from the Bus Function drop-down list box.

6. Click on the Find button. A summary list of the withdrawal account information will be displayed. The information shown includes:

• Asset Type • Currency: Currency denomination [i.e.USD (US dollars)] • WDL Instr Code: 5-Character abbreviated codes to reflect the withdrawal type [i.e.

CBILL (customer T-Bill)]. • To Bank: Bank to which the assets will be forwarded. • Bank Account Nbr: Bank Account Number


• Dft Ind: Y=Yes, N=No indicates that it is a default account. • Eff Stat: A=Active, I=Inactive instructions.

7. To view the detailed account instructions for a particular account, select (highlight) the withdrawal account from the list. Then click on the Detail button. The Withdrawal Instructions Detail screen will display. To exit this screen, click on OK.

4.2. Updating Withdrawal Instructions To update withdrawal account instructions for all Securities, IEF, Cash or Foreign Currency, you must execute the following steps: • Review the current instructions for the particular Asset Account Type, Origin (house

and customer), and Bus Function (Clearing or Security Deposit). • Enter the new Bank account Information. • Activate and Save the updated instructions.

1. On the Asset Management Main Menu, click on Withdrawal Instructions. The Withdrawal Instruction List screen will display.

2. Click on the Find button to display your current withdrawal instructions. 3. Click on the specific instructions listed in the window box that you want to update.

4. Click on the Update button located at the bottom of the screen. The Withdrawal Instruction Maintenance screen will display.


5. Enter the new data in the Bank Information section of the window. 6. Click on the Activate button. The Activate/Inactivate screen will display. The

activation date (current date) for the new instructions will be shown. Click on OK. 7. Click on the Save button. The Withdrawal Instruction List screen will display. The

withdrawal instructions listed will reflect your changes.

4.3. Adding New Withdrawal Instructions To add new withdrawal account instructions for all Securities, IEF, Cash, Stock, or Foreign Currency you must execute the following steps: • Review the current instructions for the particular Asset Account Type, Origin, and

Bus Function. • Enter the account selection and new bank account information. • Activate and save the instructions.

1. On the Asset Management Main Menu, click on Withdrawal Instructions. The Withdrawal Instruction List screen will display. Then click on the Find button. The listing of the current withdrawal instructions will display.


2. Click on the New button. The Withdrawal Instruction Maintenance screen will display.

3. In the Withdrawal Information window, select the appropriate asset account (clearing firm) number from the Asset Account drop-down list box.

4. Select the appropriate Asset Type (CASH, IEF, or SEC, etc.) from the Asset Type drop-down list box.

5. Select USD or the foreign currency (i.e. JPY, DEM) from the Currency drop-down list box.

6. Select either CSEG (customer segregated funds), NSEG (non-customer segregated/house), or CNSEG (customer non-segregated) origin from the Origin drop-down list box.

7. Select either PB (performance bond) or SECR (security deposit) from the Account Type drop-down list box.

8. In the Withdrawal Instr field, enter an abbreviated code (up to 5 characters) for identifying this account such as: CBOND (customer bonds).

9. Select the appropriate business function, i.e. CLR (clearing), from the Bus Function drop-down list box.

10. Select the appropriate checkboxes (may choose more than one): • Default for Asset: Default instructions. • Same Day Redemption for mutual funds is currently not available. • Money Changer: Asset to be sent to Money Changer to be converted to foreign

currency. 11. In the Bank Information section of the window, click on the Bank button. The Bank

Selection screen will display with the list of all eligible banks. It includes the following information: • BIC Code: Bank Identification Code • Bank: Abbreviated bank name • City • Effective Status: A=Active I=Inactive


12. Click on the bank that is to receive the assets. Then click on the Select button. The Withdrawal Instruction Maintenance screen will display. The bank you selected will be listed in the Bank field.

13. If the withdrawal should be directed to the Bond department of the bank, enter a "Y" (yes) in the Bond Dept. field.

14. Enter the appropriate data in the remaining fields: • Account Name • Account Nbr. • Attention: Contact or special department name or Ultimate Banking name and

contact. • City • State • Country

15. Click on the Activate button. The Activate/Inactivate Data screen will display. This screen indicates the effective date of the instruction.

16. Because these are new instructions, the Eff(ective) Status code will be A (active). Click the OK button to activate the instructions. The screen will return to the Withdrawal Instruction Maintenance screen.

17. If you do not have any additional withdrawal instructions to enter, click on the Save button. The instructions will be saved and the screen will return to the main menu. If you have more new withdrawal instructions to enter, click on the Save/Continue button. The instructions will be saved, but the screen will remain for further input.

4.4. Deleting a Withdrawal Instruction To delete withdrawal account instructions for all Securities, IEF, Cash or Foreign Currency you must execute the following steps: • Review the current instructions for the particular Asset Account Type, Origin, and

Bus Function. • Select the withdrawal instructions you want to delete. Note: Default instructions

cannot be deleted. They may only be updated. 1. On the Asset Management Main Menu, click on Withdrawal Instructions. The

Withdrawal Instruction List screen will display. Then click on the Find button. The list of current withdrawal instructions will display.


2. Select (highlight) the withdrawal instructions listed that you want to delete. 3. Click on the Delete button. The Confirm Delete screen will display. Click on OK.

4.5. Entering a Withdrawal Transaction for All Securities and IEF Firms may withdraw a Treasury Security, IEF funds, and Domestic or Foreign Currency when there is an excess collateral balance or to substitute one type of collateral for another. Withdrawal instructions must be entered no later than 10:30 A.M. CST. For IEF-3, instructions must be entered by 9:00 A.M. CST. Partial releases of Treasury securities must be made in $5,000 par value increments.

To withdraw assets for performance bond or security deposits, complete the following steps: • Select the Asset type. • Select the Asset to be withdrawn. • Amend the par amount, if needed. • Allocate the par value to CME Group. • Save the entry.

1. On the Asset Management Main Menu, click on the Transactions link. The Daily Transaction List screen will display. Click on the New button. The Asset Type Selection screen will display.

2. Select the appropriate Asset Type from the drop-down list box. Then click OK. The Transaction Type Selection screen will display.

3. Select WITHDRAWAL (for IEF-3 funds, select TFR-Withdrawal) from the Transaction Type drop-down list box. Then click OK. The Government Securities List (or IEF List) screen will display.


4. Click on the Find button. All of the securities/funds on deposit for the specified asset type will be listed. Click on the specific asset you want to withdraw and then click on the Select button. The Securities Transaction Maintenance (or IEF) screen will display with your specified asset.

5. If you are withdrawing the entire asset, click on the Allocate button. The Asset Trans Allocations Maintenance screen will display. The MAX WITHDRAWAL amount will be listed in the Current Allocations window. Skip to step 7 and complete the tasks for allocating the withdrawal.

6. If you are making a partial withdrawal of the asset, enter the total par amount that you want to withdraw (in increments of $5,000.00), then click on the Allocate button.


7. Click on CME in the Allocated Par CO column. Then click on the Allocate All button. The Net Par and Allocated Par Amounts in the window list will be updated with a negative value to reflect the total withdrawal amount.

8. If the par value for withdrawal is not correct, click on the Cancel button. On the Securities Transaction Maintenance screen, re-enter the correct par value. Then repeat steps 6 and 7.

9. Click on OK. The screen will return to the Securities Transaction (or IEF) Maintenance screen.

10. Click on the Save button. The system will be updated and will return to the Daily Transactions List screen.

4.6. Entering a Withdrawal Transaction for Cash 1. On the Asset Management Main Menu, select the Transactions link. The Daily

Transaction List screen will display.

2. Click on the New button, and the Asset Type Selection screen will display.


3. Select CASH from the Asset Type drop-down list box. Then click OK. The Transaction Type Selection screen will display.

4. Select WITHDRAWAL from the Transaction Type drop-down list box. Then click on OK. The Cash List screen will display.

5. Click on the Find button. A list of the currencies on deposit will be displayed. Select the cash you want to withdraw. Click on the Select button and the Cash Transactions Maintenance screen will display.


6. If you are withdrawing the entire asset, click on the Allocate button. If you are making a partial withdrawal of the currency, change the total par amount accordingly. Then click on the Allocate button. The Asset Trans Allocations Maintenance screen will display. Note that the MAX WITHDRAWAL amount will be listed in the Current Allocations window.

7. Click on CME in the Allocated Par CO column. Then click on the Allocate All button. The Net Par and Allocated Par Amounts in the window list will be updated with a negative value to reflect the total withdrawal amount.

8. If the par value for withdrawal is not correct, click on the Cancel button. Enter the correct par value. Then repeat steps 6 and 7.

9. Click on OK. The screen will return to the Cash Transactions Maintenance screen. 10. Click on the Save button. The system will be updated, and will return to the Daily

Transactions List screen.

5.0 Asset and Settlement Inquiry The Asset Inquiry function of the system allows you to view both summary and detailed listing of all assets that are on deposit for your firm with CME Group. Additionally, you can view the performance bond value of these assets.


5.1. Viewing Cash on Deposit for Performance Bond and Security Deposit Requirements 1. On the Asset Management Main Menu, click on Assets on Deposit. The Asset Type

Selection screen will display.

2. Select CASH from the Asset Type drop-down list box. Then click on OK. The Asset

Management Cash List screen will display.

3. Select the appropriate clearing firm number from the Asset Account drop-down list box.

4. The Curn (currency) field will default to US Dollars (USD). 5. Select either CSEG (customer segregated funds) or NSEG (non-customer

segregated/house) origin from the Origin drop-down list box. 6. The Account Type field will default to PB (performance bond). 7. Select the appropriate business function, i.e., CLR (clearing) from the Bus Func

drop-down list box. • Note: The Status section of the window will default to listing those assets that are

confirmed (verified). However, you can select to view those assets that are Pending, or list those that are Pending and Confirmed by clicking on the radio button for these options.

8. All of your selection criteria have been set. To list these assets, click on the Find button. All of the Cash pledged to meet your performance bond requirements for the designated account and currency will be listed in the display area. The information listed includes:


• On Deposit: Cash/currency on deposit. • Clearing Organization (CO): CME Group • Total Cash allocations to meet the requirements. • Cash allocations in USD. • Performance Bond (PB) value of the cash or currency.

9. To view the performance bond value of the currency, click on the right scroll bar arrow at the bottom of the display window to reveal the performance bond value data.

10. To exit the Asset Management Cash List screen, click on the Cancel button.

5.2. Viewing US Government Securities Pledged for Performance Bond and Security Deposit Requirements The format of the Asset Management Government Securities List screen is the same for Treasury Bills, Treasury Notes and Treasury Bonds. If you select any of the aforementioned assets from the Asset Type Selection screen, the display procedures will be the same. They are as follows: 1. On the Asset Management Main Menu, click on the Assets on Deposit link. The

Asset Type Selection screen will display.

2. Select the specific Treasury Security: (TBILL, TNOTE, TBOND) from the Asset Type drop-down list box. Then click OK. The Government Securities List screen will display.


3. Select the appropriate clearing firm number from the Asset Account drop-down list box.

4. The Curn (currency) dialog field will default to US Dollars (USD). 5. Select either CSEG (customer segregated funds) or NSEG (non-customer

segregated/house) origin from the Origins drop-down list box. If you want to view the value of the Treasury Security pledged for Security Deposit, select NSEG.

6. The Account Type field will default to PB (performance bond). 7. Select the appropriate business function, i.e., CLR (clearing) from the Bus Func

drop-down list box. If you want to view the value of the Treasury Security pledged for Security Deposit, select SECR. • Note: The Status section of the screen will default to listing those assets that are

confirmed (verified). However, you can select to view those assets that are Pending or list those that are Pending and Confirmed by clicking on the radio button for these options.

8. All of your selection criteria have been set. To list these assets, click on the Find button. All of the Treasury Securities pledged to meet your performance bond requirements for the designated account will be listed in the display area. The information listed includes: • Settlement Bank • CUSIP/ISIN numbers • Maturity Date • Total Par Amount • Clearing Organization (CO): CME Group • Total Allocated Par Amount • Performance Bond value of the security


Note: To view the performance bond value of the security, click on the right scroll bar arrow at the bottom of the display window to reveal the performance bond value data.

9. To view more detail click on the Detail button. In addition to the information listed on the first screen, the Government Securities Detail screen includes the Coupon Rate.

10. To exit the Detail screen, click on OK. To exit the Government Securities List screen, click on the Cancel button.

5.3. Viewing Letters of Credit Pledged for Performance Bond The format of the Letters of Credit List screen is the same as for the other assets, as noted on the previous pages. The process is the same, except you will select Letters of Credit as the asset from the Asset Type Selection screen. The procedures are as follows: 1. On the Asset Management Main Menu, click on Asset Inquiry on the menu bar and

select Assets on Deposit. The Asset Type Selection screen will display. 2. Select LOC from the Asset Type drop-down list box. The Letters of Credit Asset

List will display. 3. Select the appropriate clearing firm number from the Asset Account drop-down list

box.

4. The Currency dialog field will default to US Dollars (USD). 5. Select either CSEG (customer segregated funds) or NSEG (non-customer

segregated/house) origin from the Origins drop-down list box. 6. The Account Type field will default to PB (performance bond).


7. Select the appropriate business function, i.e., CLR (clearing) from the Bus Func drop-down list box. • Note: The Status section of the screen will default to listing those assets that are

confirmed (verified). However, you can select to view those assets that are Pending, or list those that are Pending and Confirmed by clicking on the radio button for these options.

8. All of your selection criteria have been set. To list these assets, click on the Find button. All of the Letters of Credit pledged to meet your performance bond requirements for the designated account will be listed in the display area. The information listed includes: • LOC Bank • LOC Id number • Expiration Date • Clearing Org (CME Group) • Total Par Amount • Performance Bond value of the LOC

9. To view more detail click on the Detail button. In addition to the information listed on the first screen, the LOC Detail screen includes the applicant (customer) information for pass through LOCs.

10. To exit the Detail screen, click on OK. To exit the Letter of Credit List screen, click on the Cancel button.

20 South Wacker Drive Chicago, Illinois 60606-7499 Tel: 1 312 930 1000 Fax: 1 312 466 4410 E-mail: [email protected] Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade.

All references to options refer to options on futures. The Globe Logo, CME®, Chicago Mercantile Exchange®, Globex® are trademarks of Chicago Mercantile Exchange Inc. CBOT® and the Chicago Board of Trade® are trademarks of the Board of Trade of the City of Chicago. CME Group is a trademark of CME Group Inc. All other trademarks are the property of their respective owners. The information within this user guide has been compiled by CME Group for general information purposes only. CME Group assumes no responsibility for any errors or omissions. Although every attempt has been made to ensure the accuracy of the information within this user guide, CME Group assumes no responsibility for any errors or omissions. While CME Group may use valid firm numbers to display examples in computer based training and user guides, the data in all examples is fictitious and is provided for general information purposes only. Additionally, all examples in this brochure are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. All matters pertaining to rules and specifications herein are made subject to and are superseded by official CME, CBOT and CME Group rules. Current rules should be consulted in all cases concerning contract specifications.

Copyright © 2007 CME Group. All rights reserved.

Chicago

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