CME Direct 10.3 Enhancements Guide 10/16/15

Transcription

1 10.3 Enhancements Guide 10/16/15

2 Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract s value is required to trade, it is possible to lose more than the amount of money deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade. All references to options refer to options on futures. CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Chicago Mercantile Exchange, Globex, ilink, E-mini, CME EOS Trader, Galax-C, FirmSoft, CME DataSuite, and CME DataMine are trademarks of Chicago Mercantile Exchange Inc. New York Mercantile Exchange, NYMEX, miny, and ClearPort are registered trademarks of the New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. FIX and FAST are trademarks of FIX Protocol Limited. FIX/FAST sm is a service mark of FIX Protocol Limited. Dow Jones sm, Dow Jones AIG Commodity Index sm, The Dow sm, Dow Jones Industrial Averagesm, and DJIA sm are service marks of Dow Jones & Company, Inc. and American International Group, Inc. (AIG) and have been licensed for use for certain purposes by the Board of Trade of the City of Chicago, Inc (CBOT ). CBOT futures and options on futures contracts based on the Dow Jones Industrial Average sm are not sponsored, endorsed, sold or promoted by Dow Jones sm, and Dow Jones sm makes no representation regarding the advisability of trading such product(s). BM&FBOVESPA is a trademark of BM&FBOVESPA, KRX is a trademark of Korea Exchange, DME is a trademark of Dubai Mercantile Exchange, BMD is a trademark of Bursa Malaysia, BMV is a trademark of Bolsa Mexicana De Valores. All other trademarks are the property of their respective owners. The information within this document has been compiled by CME Group for general purposes only. CME Group assumes no responsibility for any errors or omissions. Additionally, all examples in this brochure are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. All matters pertaining to rules and specifications herein are made subject to and are superseded by official CME, CBOT, and NYMEX rules. Current rules should be consulted in all cases concerning contract specifications. Copyright 2015 CME Group Inc. All rights reserved.

3 Table of Contents 10.3 Functionality Overview... 5 System Requirements Changes... 5 Cabinet Pricing... 6 Covered Gaming Protection... 8 Market Activity Enhancements... 9 Strategy Builder Enhancement Instrument Code Search Copying Cross Details Strategy Browser Enhancements Dragging and Dropping Strategies to a Grid Searching for Futures Strategies Searching for Options Strategies Desk Trade Notifications Crush Spread Strategies Options Grid Enhancements... 23

4 10.3 Functionality Overview CME Direct offers side-by-side access to CME listed Futures, Options, and OTC markets all on one screen. Offering electronic trading of options and futures, aggregated OTC broker markets combined with straight-through processing and straight-through clearing via CME ClearPort, CME Direct helps you work more efficiently and effectively. New in CME Direct: Cabinet Pricing Covered Gaming Protection Market Activity Enhancements Strategy Builder Enhancements Instrument Code Search Copying Cross Details Strategy Browser Enhancements Desk Trade Notifications Crush Spread Strategies Options Grid Enhancements Note: For additional CME Direct information, refer to System Requirements Changes When launching CME Direct from the system updates automatically, and no additional system changes are required Enhancements Guide 5

5 Cabinet Pricing CME Direct now supports cabinet (CAB) trades for outright Options contracts, where a cabinet trade (also known as a cabinet price) closes an out-of-the-money Option contract position at a predefined minimum tradable price. Most Options instruments have a cabinet price at which cabinet trades are executed. For CBOT Options, the cabinet price displays as C1, and for CME Options, the price displays as the real value (half tick or 1/4 of the Basis Point). The example below illustrates submitting a CAB order on CBOT Options and adjusting the CAB order price on CME Options. To enter a CAB order: 1. From the Options Grid, right-click the row of the order you wish to close. 2. From the context menu, click New Bid or New Offer. An Order Entry ticket appears. 3. In the Price field, enter C1, and in the Quantity field, enter the applicable quantity. 4. Click Bid or Offer. The order is reflected in the Instrument Details, and includes the Cabinet Price and Cabinet Value per Contract Enhancements Guide

6 Note: The Cabinet Value per Contract represents the contract value in Dollars or Euros. 5. Add a CME Option product (e.g. Eurodollar Option Jan16) to the grid. 6. Right-click a Bid or Offer cell, and from the context menu, click New Bid or New Offer. An Order Entry ticket appears with the price defaulted to Using the up and down Price arrows, prices increment by.25 (e.g..25,.50,.75, 1.00, etc,.) Enhancements Guide 7

7 Note: The Price field will not allow you to set a price lower than Covered Gaming Protection CME Direct now validates and enforces a minimum quantity requirement when orders on a covered strategy are executed. Users attempting to submit a quantity that is not large enough for the covering to be executed, receive a tooltip identifying the issue. Note: Depending on your Delta bucket, covered protection requires a different minimum quantity on the covered Option order for certain energy contracts. To enter an order on a covered strategy: 1. From the Strategies Grid, right-click in a Bid or Ofr cell of a covered Strategy, and from the context menu, select New Bid or New Offer. The Order Entry form appears. 2. In the Quantity field, tick down the order quantity Enhancements Guide

8 The quantity ticks to the minimum allowed quantity only, and when reached, the down-tick arrow is removed. 3. In the Quantity field, manually enter a quantity. Attempts to enter a quantity below the allowable minimum are disallowed and a tooltip appears (see above). Market Activity Enhancements The Market Activity view, which offers a real-time feed of trades and RFQs, now includes the following enhancements: Sound alerts when trade events are added to the view A shortcut on the Trading Grids to display the last 24 hours of market trades for any Globex Option. Sound Alerts When enabled, an alert sounds when a new row is added to the Market Activity view. For scenarios where you have multiple Market Activity views, different sounds can be configured for each.. To enable a sound alert for market activity: 1. From the Menu, select New View, and from the Add View window, click Market Activity. The Edit View window appears. 2. On the General tab, configure the activity for which you want to receive a sound alert. For example, set 'Show Market Activity for' to Trades and set the product to WTI Future: 10.3 Enhancements Guide 9

9 3. From the Alerts tab, click the Alerts Enabled check box, and in the Alert Sound field, select a sound for your alert from the list provided. 4. Optional: Click the arrow icon next to the Alert Sound field to hear a sample of the sound you selected. 5. Optional: Select a custom sound by choosing Custom from the Alert Sound field. Next, click the ellipsis button and select a sound file from the Select custom alert sound file window. Click Open once a file is selected. 6. Click OK Enhancements Guide

10 The selected Alert will now sound every time a new WTI Future trades. Show Market Trades (24 hours) New Trading Grid functionality allows users to quickly query the last 24 hours of historical trade data for an Option. The query launches a Market Activity Query view filtered specifically for the selected Option. Note: This instance of the Market Activity Query view is static and does not refresh dynamically. To view specific market activity from the past 24 hours: 1. Open either an Active Contracts Grid, Strategies Grid, or Options Grid. The example below illustrates using the Strategies Grid. 2. Right-click in a strategy row, and from the context menu, select Show Market Trades (24 hrs). The Market Activity Query window appears, and displays 24 hours of activity for the selected Option. Note: The area above the column headers displays the start and end date for the 24 hour period, as well as the activities (Trades, RFQs, etc,.) you selected when opening a Market Activity Query view. Strategy Builder Enhancement Strategy Builder now includes an Auto-calc feature, which when enabled, automatically calculates the Delta when hedging a Strategy. Note: Pricing Deltas requires the availability of Options contracts with Market Implied Volatility (MIV). View available Options in the Options Grid Enhancements Guide 11

11 To use the Auto-calc feature: 1. From User Preferences>Trading Grids>Option Strategies Grid, select an Auto hedge mode. Select With Underlying Futures Period to hedge an Option Spread with an equivalent Futures Spread. 2. From the Strategies Grid, click the Add Strategy button. The Option Strategy Builder appears. 3. In the product field, select an Option (e.g. LO: WTI Am Option). 4. In the strategy field, select a Strategy (e.g. Vertical Put Spread). The Spread legs and Hedge button enable. 5. For each leg, select a date and strike as required by the Spread type. 6. Click the Hedge button Enhancements Guide

12 The auto-calculate feature enables, and the Delta calculates automatically. Note: The Buy/Sell buttons ( / ) to the left of the Delta, indicate the hedge side. Manually overriding an auto-calculated value (e.g. Delta), disables the Auto-calc feature. Note: When disabling auto-calculation by clicking the Auto-calc checkbox, the Delta, Ref, and Strategy legs remain unchanged. 7. In the ladder display, change the Strike for one or more legs. The Delta re-calculates automatically Enhancements Guide 13

13 Instrument Code Search To identify specific strategies/spreads, users can now enter a complete CME Globex Instrument Code into the Quick Add search field, and populate a Trading Grid with the matching item. Note: The Add button disables automatically for invalid Instrument Codes. To search using a complete Instrument Code: 1. From the Menu, select Preferences. The User Preferences window appears. 2. Select the Trading Grids tab, and under Trading Grids, set the Quick Add input mode to Globex Instrument Code. 3. Click OK. 4. Open either a Futures Grid or Strategies Grid Enhancements Guide

14 5. In the Quick Add field type or paste the complete CME Globex Instrument Code, and click the Add button. Note: In addition to the CME Globex Instrument Code, users can populate the grid via the ISIN code for the given instrument (e.g. US ). The matching item displays in the Grid. Copying Cross Details CME Direct crossing functionality allows Brokers to submit two linked orders at a single price and quantity, using a single Cross ticket. Enhancements to the Crossing functionality now allows Brokers to copy Cross details from the Buyer/Seller perspective, using copy buttons on the Cross Entry/Show Cross ticket. After copying a Cross, Brokers can paste the details and submit a confirmation to the counterparties, indicating the specifics of what a Buyer bought (e.g. You bought WTI Am Option Jun STRD 100 Contracts/Month at 1.25 XNYM) or what a Seller sold (e.g. You sold WTI Am Option Jun STRD 100 Contracts/Month at 1.25 XNYM). To copy a Cross to the clipboard: 1. From the Cross Book, click the row you want to copy. 2. The Show Cross window appears. 3. In the Buyer or Seller pane, click the Copy to Clipboard icon. 4. Paste the Cross details into an item of your choosing (e.g. , Instant Message, etc,) Enhancements Guide 15

15 Strategy Browser Enhancements The Strategy Browser allows users to search for Strategies and add them to a grid. Via the Strategy Browser, users can now search for Futures Strategies, drag and drop Strategies to a grid, and view the At-The-Money (ATM) offering for Call/Put Strategies and Strip terms. To open a Strategy Browser: From the Strategies Grid toolbar, click the Find Strategy button. The Strategy Browser appears. Dragging and Dropping Strategies to a Grid Use the Strategy Browser to add existing Strategies to a grid. To drag and drop Strategies: 1. After searching for a strategy in the Strategy Browser, highlight a strategy row. 2. Hold down the mouse button, drag the strategy to the Strategies Grid, and release the button Enhancements Guide

16 The Strategy is added to the grid. Searching for Futures Strategies Use the Strategy Browser to search for Futures Strategies that can be added to a grid. To search for Futures Strategies: 1. In the Product Name field, enter a Futures Instrument Name or Instrument Code. 2. Select an Expiration and a Strategy, and click Search. Search findings appear in the Results pane Enhancements Guide 17

17 Searching for Options Strategies Use the Strategy Browser to also search for Options Strategies that can be added to a grid. From the Product Name field, user can select from a list of Options (e.g. 10-Year U.S. Treasury Note Option) and use the Search feature to identify existing Options Strategies. Displaying ATM Offering for Put and Call Strategies Use the Strategy Browser to view the ATM offering for the selected Put or Call Strategy. To display the ATM for Put/Call Strategies: 1. Select a Product and Expiration. 2. In the Strategies field, select a Put or Call Strategy. The Strikes column highlights the ATM price and centers the Strikes list around the ATM. 3. Optional: To include covered Strategies in a search, click the Include Covered checkbox. 4. Optional: Click the Search button and the ATM strategy appears in the Results pane Enhancements Guide

18 5. Optional: To add the strategy to the Grid, highlight a row and click the Add to Grid button. Identifying ATM Strike Price for a Strip Use the Strategy Browser to identify the ATM strike for the Strip you selected. To identify the ATM for a Strip: 1. In the Product Name field, enter or select a Strip Option. 2. Select an Expiration. The Strikes field populates and highlights the ATM strike Enhancements Guide 19

19 Desk Trade Notifications CME Direct now sends a system tray notification when a user's Desk trades. Enable this feature via User Preferences. To set Desk trade notifications: 1. From the Menu, select Preferences. The User Preferences window appears. 2. Select the Sounds and Notifications tab. 3. Under Notifications, and in the When my Desk trades, show me field, select System tray notification. 4. Click OK. A notifications displays when the Desk trades Enhancements Guide

20 Crush Spread Strategies A new Crush Strategy enhancement allows users to search for existing Crush Spread Strategies and display those Strategies in a Futures Grid. Note: A Crush Spread consists of the following: +11 Soybean Meal Futures (ZM) + 9 Soybean Oil Futures (ZL) 10 Soybean Future (ZS). To add Crush Strategies to a Futures Grid: 1. From the Menu, select New View, and from the Add View window, click Futures Grid. The Edit Futures Grid window appears. 2. In the Search field, type "Crush". The Available Items list populates automatically with existing strategies. 3. Move one or more Items to the Selected Items pane and click OK. The Crush Strategies appear in your Futures Grid Enhancements Guide 21

21 4. Use Futures Grid context menu to view a Crush Spread in the Strategy Builder. Right-click a Crush Spread, and from the context menu, point to Group Soybean Crush Future and click Add Item to Group. The Strategy Builder appears, and displays the properties specific to the Spread Enhancements Guide

22 Options Grid Enhancements Options Grid enhancements allow users to view a tooltip when hovering over the Strike price for FX Instruments and Copper Options. To view Options Grid tooltips: 1. From the Menu, click New View, and select Options Grid. The Options Grid appears. 2. From the Available Expirations list, select an FX product (e.g. JPY/UDS Am Option) and a Copper Option from the Base Metal products, and transfer the products to the Selected Expirations list. 3. Click OK. The Options Grid populates accordingly. 4. In the FX product pane, hover your cursor over a Strike. The tooptip appears. 5. In the Copper Options pane, hover your cursor over a Strike. The tooltip appears Enhancements Guide 23