Glossary

  • Accelerator - A special type of expansion card designed specifically for the purpose of accelerating various workloads to achieve ultra-low latency.
  • Affiliate - Companies in which the parent company owns less than 50% interest. Also used to refer to companies that are related to each other in some way.
  • Algorithm - Process or set of rules to be followed in calculations or other problem-solving operations which can perform data processing and automated trading.
  • Application Program Interface (API) - Set of routines, protocols, and tools for building software applications. Specifies how software components should interact.
  • Asset Manager - Assists and oversees all aspects of the administrative, financial, capital and operations of an assigned portfolio.
  • Audit Trail - CME, CBOT, NYMEX, COMEX Rule 536.B.2. requires that the electronic audit trail associated with any system that accesses the CME Globex platform through the CME iLink gateway contain a complete and accurate record of all activity through that connection, and account for every electronic communication by the order routing or front-end system from the time such order routing or front-end system receives or generates an electronic communication until it is communicated to CME Globex.

Firms responsible for the order routing/front-end audit trail of a trading system that accesses CME Globex through the CME iLink gateway must have the ability to display data in the required format.

Further, the connected entity must ensure that all trading functionality supported by the system is appropriately reflected in the audit trail and the Rule requires that clearing members guaranteeing a connection to CME Globex are responsible for maintaining, or causing to be maintained, the electronic audit trail for a minimum of 5 years by the responsible party as set forth in the Rule.

  • Audit Trail Profile Name - Free text string of 30 alpha-numeric characters which provides the naming convention that identifies the firm and trading application associated with the audit trail.
  • Audit Trail Profile Relationship - Identifies the relationship between the audit trail translation tool to the trading application system and there are two options:
  1. One audit trail to one trading application system (one2one): If you chose this type of relationship then only one order entry application may be tied to the audit trail profile.
  2. One audit trail to many trading application systems (one2many): If you chose this type of relationship then more than one order entry application can be tied to the audit trail profile.
  • Audit Trail Profile Version - Free text string of 10 alpha-numeric characters which provides the version of the audit trail.
  • Audit Trail Types
  • Order Entry Prop/Audit Trail Prop - Customer using a certified proprietary application for order entry and certifying a proprietary audit trail application.
  • Order Entry Prop/Audit Trail Vendor - Customer using a certified proprietary application for order entry and using a vendor for audit trail.
  • Order Entry Vendor/Audit Trail Prop - Customer using a certified vendor application for order entry and certifying a proprietary application for audit trail.
  • Order Entry Vendor/Audit Trail Vendor - Customer using a certified vendor application for order entry and using a vendor for audit trail.
  • Audit Trail Usage - Select Certification or Test. Production is reserved for Market Regulation only
  • AutoCert+ - Automated testing tool for validating application functionality which provides an easy-to-use web interface for walking through CME Group certification scenarios.
  • Bank - Financial institution licensed to receive deposits and make loans.
  • Binary - Binary code represents text, computer processor instructions, or any other data using a two-symbol system. The binary code assigns a pattern of binary digits, also known as bits, to each character, instruction, etc. and is unable to be altered.
  • Broker System - Software provided by brokers which is used for User Acceptance Testing (UAT) purposes only. A broker is a person paid a fee or commission for executing buy or sell orders for a customer.
  • Client Systems Security Ecosystem Test - Test suite enables companies to verify with CME Group that the client systems security ecosystem requirements have been completed. Client systems security ecosystem requirements include strong passwords, encryption of confidential and sensitive data and two-factor authentication.
  • CME System (CME Direct) - CME developed and supported application system which provides access to futures, options, block and OTC markets on one screen.
  • Commercial - An entity involved in the production, processing, or merchandising of a commodity.
  • Drop Copy - Risk management service designed to facilitate real-time monitoring of trading activity on the CME Globex platform. Drop Copy 4.0 sends carbon copies of iLink execution reports, heartbeats and acknowledgement, and trade bust messages for one or many source sessions through a FIX protocol-based messaging interface.
  • Exchange - Central marketplace with established rules and regulations where buyers and sellers meet to trade futures and options contracts or securities. Exchanges include designated contract markets and derivatives transaction execution facilities.
  • Execution Management System (EMS) - Designed to display market data and to provide seamless and fast access to trading destinations for the purpose of transacting orders.
  • Futures Commission Merchant (FCM) - Individual, association, partnership, corporation, or trust that solicits or accepts orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any exchange and that accept payment from or extend credit to those whose orders are accepted.
  • Field-Programmable Gate Array (FPGA) - Integrated circuit which contains programmable logic blocks and interconnection circuits designed to be configured by a customer.
  • Hedge Fund - A private investment fund or pool that trades and invests in various assets such as securities, commodities, currency, and derivatives on behalf of its clients, typically wealthy individuals. Some commodity pool operators operate hedge funds.
  • Introducing Broker (IB) - A person who is engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on an exchange who does not accept any money, securities, or property to margin, guarantee, or secure any trades or contracts that result therefrom.
  • Independent Software Vendor (ISV) System - Application system made and sold by an independent 3rd party organization specializing in making and selling software.
  • Library - A software library generally consists of pre-written code, classes, procedures, scripts, configuration data and more used by computer programs often for software development.
  • Market Data Vendor - 3rd party which provides market data to financial firms, traders, and investors. The data distributed is collected from sources such as a exchange feeds, brokers and dealer desks or regulatory filings.
  • Order Management System (OMS) - Electronic system developed to execute trading orders in an efficient and cost-effective manner. Brokers and dealers use order management systems when filling orders for various types of instruments and are able to track the progress of each order throughout the system.
  • Proprietary (Prop) System - Application system developed and utilized by an organization whose owners, employees, and/or contractors trade in the name of accounts owned by the group and exclusively use the funds of the group for all of their trading activity.
  • Quote Entry - The ability to submit Mass Quotes into the CME Globex system. The Mass Quote message allows authorized customers to generate two-sided markets on assigned options instruments. A single Mass Quote message can include up to 15 two-sided quotes for single or multiple instruments within the same Product Code.
  • Quote Vendor Only - 3rd party who disseminates the actual price, bid, or asked price of cash commodities or futures contracts.
  • Quote Vendor System - Application system developed by a 3rd party which disseminates the actual price, bid, or asked price of cash commodities or futures contracts but does not provide order entry capability.
  • Retail - Customer transactions made by a non-member of an exchange.
  • Risk Management Vendor - 3rd party who assists organizations in managing and monitoring their risk exposure resulting from their trading activity.
  • Semi-Automated Trading System - Trading system that is not fully automated and still requires some human interaction.
  • Tag 1603 - Free text string of 30 alpha-numeric characters which provides the name of the application system being used to generate FIX application messages. This will normally be a trading system, OMS, or EMS. For iLink 3 this tag is required on the 35=Establish message only.
  • Tag 1604 - Free text string of 10 alpha-numeric characters which provides the version of the application system being used to initiate FIX application messages. For iLink 3 this tag is required on the 35=Establish message only.
  • Tag 1605 - Free text string of 10 alpha-numeric characters which provides the vendor of the application system. For iLink 3 this tag is required on the 35=Establish message only.
  • Tax ID - A Taxpayer Identification Number is an identifying number used for tax purposes in the United States. It is also known as a Tax Identification Number or Federal Taxpayer Identification Number. A TIN may be assigned by the Social Security Administration or by the Internal Revenue Service.