Key Liquidity Provider Programme (“LP Programme”)
Eligible Membership
Clearing Members and Non-Clearing Members (collectively “Members”)
Description and Details of Programme
CME Europe Limited (hereafter “CMEEL”), will offer ten (10) Members a six (6) month incentive to
actively quote the markets in order to promote liquidity for price takers and to tighten spreads.
The LP Programme will offer firms providing regular liquidity lower exchange fees for the duration of
the Programme.
Participating firms in the Programme will see their fees reduced from the standard $0.50 per side to
$0.01 per side.
Applicable Account Type
Clearing Members: House Accounts
Non-Clearing Members: House and Client Accounts
Products in scope
Reduced fees will apply to all Contracts executed in the products listed in Schedule 1. Please note
that this Schedule 1 may be updated from time to time.
Blocks, EFRPs and calendar spreads on these Products are included for the purposes of this LP
Programme.
Application Process
The ten (10) available places will be allocated on a first-come first-served basis. Applicant firms must
demonstrate to CMEEL they are capable of meeting minimum thresholds of technological proficiency
and market expertise, in accordance with industry standards.
CMEEL will update Members from time to time with the number of available places (if any) for this
Programme at www.cmeeurope.com.
In order to proceed with your application, please contact:
Strategic Sales Team, CME Europe, [email protected] +44 20 3379 3705
Eligibility
The LP Programme is open to all Members who can demonstrate the ability to actively promote
liquidity and tighten spreads for price takers. A typical example of such behaviour is the frequent
submission of orders in the central order book to attract and satisfy customer order flow.
A maximum of ten (10) Members in total may participate at any given time.
Eligible Membership Type
Programme Benefits
Clearing Member (CM)
The incentives ($0.01 per contract) will
apply to all house account trades (for
CM’s), and all house and client accounts
(for NCM’s) executed in the products
described here above.
Non-Clearing Member (NCM)
Market Maker Obligations
Compliance with the Market Maker Obligations will be reviewed at the end of every calendar month;
non-compliance can result in being removed from the Programme. If a Member is removed for noncompliance, the exchange will have the right to replace that firm by re-opening the selection process.
The Programme is open to all Members who satisfy the following criteria:
Major Currencies Products:
Contract Months
Time Period (GMT)
Maximum Bid-Ask
Spread
Minimum Quote Size
(Lots)
Front
8AM – 4PM
2
10
M2/M3
8AM – 4PM
3
5
M4 – M12
8AM – 4PM
4
5
In order to be compliant, at least 50% of the Orders in the Major Currencies Products must be passive
in nature. Passive is defined as entering a resting Order that is then subsequently executed.
It is understood that these market maker obligations are applicable under normal market conditions.
Other Currencies Products:
Contract Months
Time Period (GMT)
Maximum Bid-Ask
Spread
Minimum Quote Size
(Lots)
Front
8AM – 4PM
TBC
5
M2/M3
8AM – 4PM
TBC
5
M4 – M12
8AM – 4PM
TBC
5
The participant in this LP Programme must indicate in its application which Other Currencies Product
it will be providing liquidity for.
In order to be compliant, at least 35% of the Orders in the selected Other Currencies Product must be
passive in nature. Passive is defined as entering a resting Order that is then subsequently executed.
It is understood that these market maker obligations are applicable under normal market conditions.
For the purposes of this LP Programme, normal market conditions shall be defined as a volatility
index (FX VIX) below or equal to 30. Should the index be higher than 30, all market maker obligations
as detailed in the LP Programme shall be suspended until such time as the index is equal to or below
30.
The start and finish of any such suspension will be confirmed to participants in the scheme via email/market notice.
Programme Commencement Date and Period
The Programme will run for a period of six (6) months from the scheme start date.
Billing
Normal billing conditions apply.
Termination
CMEEL reserves the right in its absolute discretion, to terminate the Programme with one (1) week
notice.
All capitalised terms used in this LP Programme term sheet are as defined in the Exchange Rules.
Schedule 1 – Products
Major currencies Products:
Australian Dollar/US Dollar (AUD/USD)
British Pound/US Dollar (GBP/USD)
Euro/US Dollar (EUR/USD)
Euro/British Pound (EUR/GBP)
New Zealand Dollar/US Dollar (NZD/USD)
US Dollar/Canadian Dollar (USD/CAD)
US Dollar/Japanese Yen (USD/JPY)
US Dollar/Swiss Franc (USD/CHF)
Euro/Japanese Yen (EUR/JPY)
Euro/Swiss Franc (EUR/CHF)
Other Currencies Products
Euro/Danish Krone (EUR/DKK)
Euro/Norwegian Krone (EUR/NOK)
Euro/Swedish Krona (EUR/SEK)
US Dollar/Israeli Shekel (USD/ILS)
US Dollar/Mexican Peso (USD/MXN)
US Dollar/South African Rand (USD/ZAR)
Euro/Chinese Offshore Renminbi (EUR/CNH)
Euro/Chinese Renminbi (EUR/CNY)
Euro/Czech Koruna (EUR/CZK)
Euro/Hungarian Forint (EUR/HUF)
Euro/Polish Zloty (EUR/PLN)
Euro/Turkish Lira (EUR/TRY)
US Dollar/Turkish Lira (USD/TRY)
US Dollar/Chinese Offshore Renminbi (USD/CNH)
US Dollar/Ukrainian Hryvnia (USD/UAH)
US Dollar/Brazilian Real (USD/BRL)
US Dollar/Chinese Renminbi (USD/CNY)
US Dollar/Indian Rupee (USD/INR)
US Dollar/Korean Won (USD/KRW)
US Dollar/Russian Ruble (USD/RUB)