Credit Controls

Clearing Member and Execution firm administrators can use the Credit Controls function to manage CME Globex, CME ClearPort and CME Direct account level credit (preferred currency and maximum credit limit) and order submission (maximum permissible long / short) limits, for a product group and individual products.

Trader / Trader Risk Administrators can use Credit Controls to view and manage risk settings, including credit and long / short quantity limits.

Order handling:

Credit limit checks utilize top of day trading activity; starts flat each trading day.
Orders that are within limits are approved for execution.
CME Globex trades, submitted using CME Direct, can be viewed in Firmsoft.
Orders are rejected if they contain restricted products or requested quantities exceed limits.
Margin rates and intra-commodity spread credits are used to determine credit usage, by product and type of trade.
Completed orders are viewable in Front-End Clearing (FEC+).
Options product limits are set independently of futures and are subject to overall credit limit.

Rejected order handling: An authorized clearing / execution firm administrator must increase the limit and / or configure additional products.

Available functions:

Managing Account Credit Controls

To manage account credit controls:

Users can specify the Currency, Credit Limit, Maximum Quantity Long / Short Limits (product quantity limits are not required for CME ClearPort).

After selecting a Service and specifying Markets, Products and Brokers, go to the Credit Controls page; available for CME Direct (CME Globex) and ClearPort Clearing.
Specify the Currency and Credit Limit (CME Direct) / RAV Limit (CME ClearPort) and product limits (Maximum quantity long / short).

Margin rates and intra-commodity spread credits are used to determine credit usage, remaining credit and percent used; by product and type of trade.

For option limits the system uses the (futures equivalent) most restrictive of credit), product permissions, long/short product limits.

CME Direct - Credit ControlsCredit Limit is required.
CME ClearPort - Credit Controls: RAV Limit is required.

RAV Limit - Account-level RAV limit is set by the clearing member firm and required for trading on CME ClearPort.
Margin Usage - Amount of margin used (of the available RAV limit)
Remaining Margin of the total available RAV limit
% Margin Used - Margin Usage as a percentage of the RAV limit
Max Margin Usage - Highest utilization value of the day.

Example: If current day usage was 15 / 10 / 20 / 17, the value would be 20. If a trade exceeds max margin usage, and is voided, max margin usage before the trade was voided will appear.

Historical Max Usage Report () - Download a spreadsheet that includes three-months of historical limits on a daily basis, including Max Margin usage and end of day RAV Limit.
Limit Colors: Limits will appear with a color to acknowledge the status (including recent updates):

- Green: Currently applied limit

- Orange: An open transaction exists for a recently updated (pending) limit. To view details, move the mouse pointer over the limit to view an informational message.

-Red: A requested limit update is not applied due to an error. To view details, move the mouse pointer over the limit to view an informational message, which can provide details on resolving the error.

Limits with pending or error status cannot be copied or updated via the bulk / upload update process.

Inline Credit Controls (ICC): (optional) Specify product level Clearing and / or Execution Firm position limits.

For the Permissible Products field, select from available options:

Show all products with unique limits: Filter the Product list to products that have user specified limits.
Show all products tradable in this account: View all authorized products, via Market Types - Available Products.

For each product that will be authorized, specify the Max Qty Long / Max Qty Short.

Note: For Globex ICC only: Default value is Not Set, which uses the Globex Admin Policy settings to determine order entry and trading permission.
Admin Settings - Unset Limit Rule: When limits are not set (by either Clearing Member or Execution Firm) for the specified account, the account is limited to trading products within the overall firm Credit Limit.
Additional considerations: See also: Calculating option limits.

To finalize Credit Control settings, select Save.
(For new / pending accounts) On the account creation dialog that appears, select an account creation option:

Create Account as:

Active: Finalize credit controls and activate the account. Additional configuration, for other applications / services, may be necessary.
Inactive: Finalize credit controls, but do not activate the account. Additional configuration can be performed or the account configuration can be used as the basis for additional related accounts (via the Account Copy function).

Note: To activate the account later, search and select the inactive account.
From the Account Settings page, select Activate.

Additional Options:

Additional Resources: