MGEX™ Clearing Redesign Project

MGEX is in the process of completely reengineering and modernizing its clearing house technology platform. The new MGEX Clearing System will employ a microservices driven design to deliver a real-time, end-to-end clearing solution. This new platform will yield a number of technological and business processing improvements including:

• Implementation of a real-time, two-way messaging API that allows clearing members to automate various transactional services

• Introduction of a modern, intuitive user interface with enhanced clearing member self-service capabilities

• Increased operational efficiency and vastly improved functional and technical scalability

• Reengineering of various business processes to more closely align with the needs of clearing members and enhance efficiency and service

• Adoption of industry standards and best-practices with regards to trade management, clearing, settlement and risk management processes

This project is being delivered in two phases. Phase one began in Q3 2021 and incorporates the majority of clearing member facing functionality including trade management, position management, collateral management, settlement, delivery, and reporting. Phase two completes the effort by modernizing the risk management platforms including margin calculations, back testing and stress testing, and support for real-time variation calculations.

While phase one introduces a number of major technology improvements that allow clearing members to implement straight-through-processing and enhanced automation, the phase one system is being designed to support backward compatibility with the existing MGEX Clearing System’s electronic, machine-readable file formats.  This allows clearing members to take advantage of the new UI and business processing improvements provided by the new MGEX Clearing System immediately upon launch while the technology development effort to adopt the new messaging protocols can run on a parallel track.

All technical specifications are still undergoing review and are subject to changes pending that review and final development, but they are provided here to serve as a useful resource to begin to scope the work required to leverage the full capabilities of the new MGEX Clearing System.  We also welcome feedback and input on any areas that need further clarification or potential revision to better support your processing needs. Any feedback can be sent to MGEX Clearing Operations at mgexclearingoperations@miami-holdings.com.

Timelines

Please view the phase one timeline here.

The timeline for phase two will be announced at a future date.

Connectivity Guide

Technical Specifications

Trade and Allocation Management Interface (TAMI) Specification

This specification describes the bi-directional MQ FixML interface that clearing members will use to:

• Receive real-time trade reports from MGEX Clearing

• Perform trade management functions

• Perform give-up/take-up allocations and associated actions

Position Change Submission (PCS) Reporting Specification

This specification describes the PCS Report that clearing members may submit to fulfill the obligation to report gross long and short positions for all futures and options contracts on a daily basis.

Expiring Position Reporting Specification

This specification describes the Expiring Position Report that clearing members may submit to fulfill the obligation to report open positions (long and short), along with corresponding account numbers, as a part of the settlement process of a financially settled futures contract or a physically delivered contract that uses compulsory delivery.

Long Date Position Reporting Specification

This specification describes the Long Date Position Report that clearing members may submit to fulfill the obligation to report long positions, along with corresponding account numbers and the date acquired, as a part of the delivery process of physically delivered contracts that use an intention-based delivery method.

Training Resources

The following resources have been designed to assist users in familiarizing themselves with the new MGEX Clearing System user interface and capabilities. All resources are subject to change.

MGEX Clearing System User Manual (View)

Instructional Videos

General:

Dashboard & Navigation (View)

Basic System Functionality (View)

Communication Settings (View)

Financial Settlement Details (View)

Margin Information (View)

Trades:

Create a Manual Trade (View)

Update or Delete an Unmatched Manual Trade (View)

Receive a Manual Trade (View)

Update a Matched Trade (View)

Mass Update Matched Trades (View)

Split a Matched Trade (View)

Transfer Trade File Upload (View)

Allocations:

Adding Trades to Give-up Groups (View)

Removing Trades from Give-up Groups (View)

Cancel a Give-up Group (View)

Initiate a Give-up (View)

Initiate an Average Price Give-up (View)

Update or Cancel a Give-up (View)

Update, Accept, or Reject a Take-up (View)

Initiate a Give-up Reversal (View)

Sub-allocate an Accepted Take-up (View)

Remove a Sub-allocation from a Give-up Group (View)

Position Management:

Reviewing Current Positions (View)

Gross Position Reporting (View)

Expiring Position Reporting (View)

Delivery:

Long Date Position Reporting (View)

Warehouse Receipts (View)

Delivery Intentions (View)

Delivery Assignments, Settlements & Receipt Details (View)

Options:

Early Option Exercise Intentions (View)

Option Expiration: Exercises and Abandonments (View)