Abbreviations Flashcards
A
Offer (Ask) - Price offering terminology when trading
ACC
Accepted - Term used in reference give-up transactions, accepted by the claiming firm
ACS
Allocation Claim System - A CME system used by firms involved in the allocation and claiming of five-up transactions. Many firms also use one of the middleware systems available to automate this process (GL Clearvision, Emos, ATEO)
ACSSS
American Council of State Savings Supervisors - Part of State Liaison Committee (SLC), along with CSBS and NASCUS
AD
Australian Dollar - FX currency
ADN
Alternate Delivery Notice
ADV
Average Daily Volume - the average amount of contracts traded in any given product
AEM
All employee meeting
AML
Anti-money Laundering - related to the ‘Know Your Customer” policies
ANC
Adjusted Net Capital
AON
All or None - a style of order designed to fill the complete quantity, not partially fill it
APN
Accept Pending - A designation/message on a give-up transaction indicating the current status as pending. It will remain this way until the claiming firm rejects or accepts the transaction
APS
Average Price System - A System used by firms/traders to group a series of trades made up of the same criteria (buy or sell of the same contract) to obtain a single average price across the whole group. Frequently used by fund managers to ensure all accounts receive the same price
ARR
Allocation Reversal Request - A designation/message on a give-up transaction indicating the current status as reversal requested. It will remain in this status until the executing firm accepts or rejects the reversal transaction. This may occur because of bad price allocated, allocated to the wrong firm, incorrect buy/sell code, etc
AS A/C
Asset Account
ASEF
Alternate Swaps Execution Facility
ATIS
A Thorn in my Side - A back office proprietary bookkeeping system, orginally developed by O’Connor & Sons
ATM
At the Money - term used to describe a position instructions to exercise
ATS
Alternative strike price which is the same as the underlying settlement price. In this situation the position would not be automatically exercised, client/firm must submit specific Trading Systems
AUD
Australian Dollar - FX currency
B
Bid - price offering terminology when trading
BAU
Business as usual
BBH
Brown Brothers Harriman - A settlement bank used by CME Group clients
BCP
Business Continuity Planning - Group responsible for all Disastor Recovery (DR) planning within CME Group
BDS
Business Development services
BEI
Business Entity Identifiers - (SWIFT related)
BFCC
Business Function Combined Commodity
BIA
Business Impact Analysis
BIC
Business Instructional Code - Specific code designated to banks used in transaction messaging by various Clearing House Departments
BIS
Bank for International Settlements - an FX related institution
BK trades
Broker Reassignment - allow an IOM member, trading outside his/her division to be recorded as the filling broker on the futures leg of the options/futures combination trades
BKE
Bilateral Key Exchange
BKR
Broker - person who acts as an intermediary between a buyer and a seller, usually charging a commission
BOMA
Building Owners and Managers Association - Works closely with CME group to ensure that our evacuationa dn facility security plans are current and accurate
BONY
Bank of New York - A settlement bank used by CME group clients
BP
British Pound (also GBP) - an FX currency
BPM
Business Performance Management
BR
Brazilian Real - an FX currency
BRPA
Business Resumption Planners Association - an independant professional association of people employed in all aspects of disastor recovery, contingency, and business continuity planning
C21
Clearing 21 - The C21 system suppors a variety of functions that enable member firms to view settlement information by origin and settlement account. Firms can also obtain Margin call and cash release information online using the settlement system
CAB
Cabinet Trades - A cabinet trade is an obtion trade executed in a deep out-of-the-money obtion at a permium value less than the standard minimum tick. Each option product chapter defines the standard minimum tick increment and the allowable cabinet increments applicable to that product
CAD
Canadian Dollar - an FX currency (also CD)
CAM
CME Auction Markets - A market utilizing the Auction system through which CME AM makes Auction Instruments available to auction participants
CBOE
Chicago Board Options Exchange - Exchange which ises the OCC as their clearing corporation
CBOT
Chicago Board of Trade - Merged with CME to form CME Group in 2007
CCS
CME Clearing Support group - department within the Clearing House
CCP
Central Counterparty
CD
Canadian Dollars - an FX currency (also CAD)
CDD
Cooling Degree Day - weather contract related - an average of temperature for that particular city over the course of the month
CDM
Clean Development Mechanism - where CER’s contracts are held in temporary accounts
CDS
Credit Default Swaps
CEA
Commodity Exchange Act
CER
Certified Emission Reduction - Emissions Futures Contract (Euro Denominated)
CEM
Current Exchange Method - Relates to the calculations in regards to the CME guarantee funds
CF
Clearing Fee - Fees charged to exchange members and non-members alike for various clearing transactions
CFI
Center for Innovation - CFI creates and sponsors thought provoking original programming that identifies, showcases, and fosters examples of significant innovation and creative thinging across multiple industries
CFPB
Consumer Financial Protection Bureau - Part of the FFIEC council. The council is a formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions
CFTC
Commodity Futures Trading Commision - The US government agency responsible for regulating domestic futures and options exchanges and their members
CH
Clearing House - the administrative center of a market through which all transactions are cleared. In addition to administering trades, the clearing house guarantees the performance of contracts. It becomes the counter party to both the buyer and seller when a trade is matches, greatly reducing counterparty risk. Other functions include ensuring the underlying financial instruments or commodities are actually delivered to fulfill futures contracts, and maintaining the margin accounts
CHF
Swiss Franc - an FX currency
ChicagoFIRST
ChicagoFIRST - a non-profit dedicated to Homeland Security and Emergency Management issues affecting financial institutions requiring a coordinated response. It is a coalition of private sector financial institutions and several local, state, and federal agencies
CIG
Corporate Initiative Group
CIKR
Critical Infastructure Key Resources - Cyber securty risk management collaboration
CIL
Client Internet Link
CISCP
Cyber Information Sharing and Collaboration Program - Align and mature government and CIKR cyber security risk management colloaboration
CIT
Clearing Information Technology - IT support for the Clearing House
CITL
European Community Transaction log - a link to the ITL
CLAR
Customer Line Alternative Routing - Enables firms to faciliate give-up trade processing via MQM/TREX as an alternative to entering data via our on-line Give-up System, GUS
CLR
Normal Clearing - A day in which clearing follows it’s regular schedule of trade processing, with no special considerations for holiday processing
CLS
Continuous Link Settlement - Banking system used to match deliveries in foreign currency futures for real-time settlement of both sides of the transaction
CM
Clearing Member - a member of the clearing house organization
CMA
Credit Market Analysis, Ltd.
CMB
Common message board - application used by the CH to maintain and moniter firm’s queues for both incoming and out going messages
CMAC
Competitive Markets Advisory Council
CME
Chicago Mercantile Exchange
CME AM
CME Alternative Marketplace Inc. - a subsidiary of CME which is not regulated by the CFTC.
CMECE
CME Clearing Europe - represents the London CME Clearing House
CMF
Clearing Member Firm - member firm, or FCM of a clearing house organization
CMT
Crisis Management Team - related to business continuity group
CMU
Client Member Update - reference to approval process for new clearing firms
CORE
Clearing Online Risk Engine - clearing member and client risk application
CSBS
Conference of State Bank Supervisors - Part of the SLC, along with ACSS and NASCUS
Cseg/Cust
Customer Segregated - certification support for Electronic Trading Group that supports the Certification and New Release Environments
CST
Central Standard Time - Time zone of chicago, also known as CDT during daylight savings
CTI
Customer Type Indicator - Bookkeeping clearing code which indicates one of the following: CTI 1 = Broker/trader trading own account; CTI 2 = Broker/trader trading for house account; CTI 3 = Broker/trader trading for the account of another broker/trader present on the trading floor or for an account controlled by such a broker/trader; CTI 4 = Broker/trader trading for any other customer’s account
CTM
Clearing Trade Management
CTR
Computerized Trade Reconstruction - The market regulation department will conduct audits of clearing members to verify that required audit trail information has been accurately recorded and submitted.
CUSIP
Committee on Uniform Securities Identification Procedures - a CUSIP number identifies most securities. The CUSIP system facilitates the clearing and settlement process of securities. The number consists of nine characters unique to each company or issuer
Cust
Customer Origin
DAT
Damage Assesment Team - related to Business Continuity Group
DCE
Data Center Engineering - Computer room security for equipment, location, and access
DCO
Derivatives Clearing Organization
DCM
Designated/Derivates Clearing Member - a CME Clearing Member approved for the purpose of entering orders to an Auction on behalf of auction participants together with the duties, rights, and privileges attendant to membership in the CH
DDoS
Distributed Denial of Service - Infosec related to cyber/Internet attack of customer and/or public facing url’s
DHS
Department of Homeland Security
DIP
Delivery Instructions Process - the process and protocol firms follow when involved with deliveries. These protocols vary depending on the product being delivered
DISCR
Discretionary - Order indicator giving the executing broker a level of discretion on what price a particular order is filled
DMA
Direct Market Access - refers to traders with direct access to Globex
DMAIC
A QPE Guideline to improve processes across the CH - Define, Measure, Analyze, Improve, and Control
DME
Dubai Mercantile Exchange
DMS
Deal Management System - OTC product/deal related
DNS
Deliver Notice Server
DSRO
Designated Self Regulatory Organization - CME Group Audit department performs risk based regulatory examinations of clearing members for which is has DSRO
DTC
Depository Trust Company - the worlds largest central securities depository, it accepts deposits of over 2 million equity and debt securities issues from over 65 countries for custody
DTCC
Depository Trust Clearing Corporation - through its subsidiaries, provides post-trade clearing, settlement, custody and information services for equities, corporate and municipal debt, money market instruments, American depository receipts, ETFs, and other securities
DVA
Daily Value Adjustment
E/A
Exercise/Assignment - the process whereby the option buyer asserts his/her right and goes long the underlying futures. Assignment refers to the obligations of sellers to take the opposite futures position of the buyers
EBOT
Exempt Board of Trade - Clearing Members eligible to clear CME products and Special CME Clearing Members eligible to clear CBOT products may clear Eligible Products traded on CME AM, at the discretion of the CH
EC
Euro Currency - an FX currency
ECC
Emergency Change Control - a system modification in any environment that must happen outside of the normal weekend maintenance window
ECN
Electronic Communications Networks - electronic systems used to trade securities
ECP
Eligible Contract Participants - Trading on the EBOT is restricted to eligible contract participants
ED
Euro Dollar - the most widely traded interest rate futures product in the world. It enables traders to hedge fluctuations on Eurodollars - U.S. dollars deposited in commercial banks outside the US
EEP
Excess Emissions Penalty - A delivery penalty related to Emissions Futures Contract (Euro Denominated)
EFP
Exchange for Physical - a privately negotiated, non-competitive futures trade transacted apart from the public auction market of a futures exchange but submitted for clearing through a futures clearing house
EFR
Exchange for Risk - a futures market transaction that provides market participants a way to unwind existing OTC positions into new OTC positions. Similar to an EFP transaction, except that it involves an exchange of a futures position for an OTC position rather than an exchange for a physical commodity. EFR transactions facilitate an easy, efficient entry or exit from the OTC position
EFS
Exchange Fee System - Exchange system used by firms to manage exchange and clearing fees
EFS
Exchange for Swap - a practice similar to EFP, used by exchange market participants as an additional instrument to add flexibility to trading and risk management portfolios. Allows market participants to exchange a futures contract position for a cash-settled position instead of a physical commodity. Also gives market participants the ability to liquidate a swap position in a market that may have limited liquidity
EMA’s
Federal and State Emergency Management Associations
EOD
End of Day - Signifies the end of the trading day and is often associated with firms’ processing schedule
EOM
Unit of Measure
ePRS
Electronic Price Reporting System
EREP
Enterprise Reports - Client facing report repository which replaced Document Direct
ES
Enterprise Solutions - working group within the CME
ERT
Emergency Response Team - related to Business Continuity Group
ETF
Exchange Traded Funds
ETH
Electronic Trading Hours - trading hours on electronic markets opposed to open outcry markets
ETP
Electronic Trade Poster
ETPA
Electronic Trade Posting Application - Electronic Trading Production Assurance Group who supports all production components and systems
EUA
European Union Allowance - Emmissions Futures Contract (Euro Denominated)
EU ETS
European Union Emissions Trading Scheme - Emmisions Futures Contract (Euro denominated)