• Recording Requirements on the Chicago and New York Trading Floors

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • SER-6957
      • Notice Date
      • 11 December 2013
      • Effective Date
      • 21 December 2013
    • * * * * * I M P O R T A N T   I N F O R M A T I O N * * * * *
       
      The compliance date for previously announced revisions to CFTC Regulation 1.35(a)(1) concerning the requirement placed on certain industry registrants to record and archive oral communications that lead to the execution of a transaction in a commodity interest and related cash or forward transactions is December 21, 2013. The revisions were published in the Federal Register on Friday, December 21, 2012, and may be accessed here. Those requirements apply to certain industry registrants as set forth in the Federal Register release, and include FCMs and certain IBs and members of DCMs. 
      This Special Executive Report is to provide members and member firms located on the trading floors of the CME Group Exchanges in Chicago and New York with information concerning changes to the recording requirements applicable to Exchange-provided telephones used at booths on the trading floor that will become effective on December 21, 2013.
      Telephones Used in Booths on the Trading Floor
      Chicago Trading Floors
      Effective December 21, 2013, CME Group will no longer offer voice recording services for any Exchange-installed telephones located in booths on the trading floors in Chicago that are not currently being recorded by CME Group.
      As of December 21, members and member firms using telephones located in booths that are not being recorded by CME Group which will need to be recorded pursuant to the provisions of CFTC Regulation 1.35 will need to install or make arrangements to have installed recording equipment for purposes of compliance with CFTC Regulation 1.35.  
      With respect to members and member firms utilizing CME Group’s recording and archiving service for telephones in booths, CME Group will continue to perform the recording of these lines for up to 90 days past December 21, 2013, (through close of business on Friday, March 21, 2014). Also, beginning on December 21, 2013, CME Group will maintain those recordings for one year past the date on which the recordings are made. This will comply with the one year retention requirement set forth in CFTC Regulation 1.31 applicable to oral recordings required to be made pursuant to CFTC Regulation 1.35. 
      Effective Monday, March 24, 2014, CME Group will no longer provide recording or archiving services for telephones in booths on the Chicago trading floors. Prior to March 24, 2014, members and member firms subject to the oral recording requirements of CFTC Regulation 1.35 must install or make arrangements to have installed their own recording equipment or recording equipment provided by a third-party vendor.
       
      New York Trading Floor
      CME Group will continue to perform the recording of telephones in booths on the New York trading floor for up to 90 days past December 21, 2013, (through close of business on Friday, March 21, 2014). CME Group will maintain those recordings for one year past the date on which the recordings are made, which will comply with aforementioned CFTC Regulation 1.31. 
      Effective Monday, March 24, 2014, CME Group will no longer provide recording or archiving services for telephones in booths on the New York trading floors. Prior to March 24, 2014, members and member firms subject to the oral recording requirements of CFTC Regulation 1.35 must install or make arrangements to have installed their own recording equipment or recording equipment provided by a third-party vendor.
      CME Group Telecommunications Department Assistance
      The CME Group Telecommunications Department will assist all members and member firms with the transition, which will include providing contact information for third-party recording vendors, installation of firm-owned recording equipment on or near the trading floors and firm owned VOIP turrets, if necessary. Please contact the CME Group Telecommunications Department staff listed at the end of this Special Executive Report for further information or guidance in this regard.
       Telephonic Devices Used in and around Trading Pits on the Trading Floor
      CME Group will continue to require that all Exchange-issued telephonic devices, including wired and wireless headsets, used in and around trading pits on the trading floors in Chicago and New York be recorded. CME and CBOT will continue to permit members or member firms to utilize their own recording devices or to utilize the Exchange administered voice recording system. NYMEX and COMEX will continue to require members and member firms to utilize the Exchange administered voice recording system. CME Group will extend the retention period for recordings conducted on the Exchange administered voice recording system to one year past the date on which the recordings are made from the current 10 business day period. Additionally, CME Group will continue to prohibit the use of the voice capabilities of personal electronic devices for business purposes on the trading floor. As such, members and employees of member firms using Exchange-issued telephonic devices in and around trading pits are not required to take any action at this time. 
      CME Group Telecommunications Department Contacts:
      Chicago                                                            New York
      Maureen Ferriter , Mgr. TF Operations                 Robert Del Terzo, Director Telecommunications
      312.347.4925                                                     212.299.2266
      Maureen.Ferriter@cmegroup.com                       Bob.DelTerzo@cmegroup.com
       
      Peter Fitzgerald, Director Telecommunications    Robert Mendez, Mgr, Telecommunications
      312.435.3533                                                    212.299.2963
      Peter.Fitzgerald@cmegroup.com                       Robert.Mendez@cmegroup.com
       
      CME Group Market Regulation Department Contacts:
      Chicago                                                            New York
       
      Robert Sniegowski, Senior Director                    Wayne Karnatz, Manager
      312.341.5991                                                     212.299.2913

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