The Buy Futures area on the GC2 window that enables the GC2 Risk Administrator to set Max Quantity Limit for a futures "buy" order.

The Buy Options area on the GC2 window that enables the GC2 Risk Administrator to set Max Quantity Limit for an options "buy" order.

Also called Executing Firm ID.

The CME Group or partner exchange Clearing member firm.

Individual at the Clearing firm who has the capability to enter and change risk parameters for GC2.

Logical grouping of Executing Firm ID / Exchange within a Legal Clearing Entity (LCE).

GC2 displays exposure limit and (product) maximum quantity limit

The area on the GC2 window which details the long and short futures positions. The position is based on the Specific Listed Contract Margin Rate and defined in U.S. dollars.

The area on the GC2 window which details the long and short options positions. The position is based on the margin rate defined in U.S. dollars.

An organization, incorporated or unincorporated, that constitutes, maintains, or provides a marketplace or facilities for bringing together purchasers and sellers of securities or futures.

Examples: CBOT, CME, NYMEX, COMEX and KCBT.

Spreads whose legs are defined by the Exchange. EDS is the only way by which future spreads are defined. There is no EDS for options.

A logical entity allowed to trade products in accordance with its clearing relationships. The Executing Firm ID is three digits long and is alphanumeric or just numeric. Sometimes this coincides with the Clearing Firm ID. Executing Firm ID is synonymous with: Executing Firm, CME Globex API / CME Globex API ID, Trading Member Firm (TMF) / Trading Firm, and Badge Firm.

The GC2 Risk Administrator must set the exposure limits per Executing Firm ID / Exchange for:

• Futures overall exposure limit in USD (no default, a value must be set)

• Options overall exposure limit in USD (no default, a value must be set)

If a position reaches the exposure limit at 100%, CME Globex rejects all new orders and cancel/replace messages on the exceeding side. A cancel message is accepted.

Buying and selling the same future but on different Exchanges

Example: NYMEX July Wheat vs KCBT Oct Wheat

All legs are in a similar underlying asset. Buying one future in a given delivery month and selling a different future in the same delivery month.

Buying and selling the same future but for different months Example: Buy July Wheat and sell Dec Wheat.

GC2 Entity is defined as the Clearing firm which legally guarantees trades executed for a single Executing Firm on CME Globex. The clearing firm may clear products from a single or multiple exchanges.

GC2 Entity is defined as the combination of Legal Clearing Entity + Executing Firm ID + Exchange

In addition to entering the Exposure Limits, the risk administrator can enter the optional Max Quantity Limit for Buy/Sell Futures and/or Buy/Sell Options for the grouping.

The Clearing Firm or partner exchange risk administrator can specify the percentage of utilized limit at which to receive a credit control alert.

Describes a group of products belonging to a given economic sector or market segment which include: Agriculture, Credit, Economic Events, Energy, Equity Index, FX, Interest Rates or  Metals.

See also: Exchange Traded Instruments on CME Globex - Product Complex (on the CME Group Client Systems Wiki)

Defines the daily exposure limits per Executing Firm ID/ Exchange group using GC2.

The Sell Futures area on the  CME Globex Credit Controls window where the GC2 Risk Administrator sets Max Quantity Limit for a futures "sell" order.

The Sell Options area on the GC2 window where the GC2 Risk Administrator sets Max Quantity limit for an options "sell" order.

A positive single percentage value that is universally applied for all qualifying spreads.