CME Quoting Both Sides

cjbuckley4

cjbuckley4

I've seen some limited information on this from @xandman (whom I probably owe a direct message), but does anyone here have any information on what it takes to quote both sides on a CME exchange? Must one become a designated market maker as this seems to imply? I've seen some posts on the TT forum about this as well. Also, in the event quoting both sides is allowed, does the SMP functionality with CME apply to individuals? The language in the description seems to imply it's per firm. Since placing orders on both sides is probably impossible for individuals, what have people done to get around this? I hesitate to use some kind of multi account or multi FCM approach, but I'm open to reading about how other people have dealt with this.

Furthermore, is it correct that some European exchanges such as EUREX will allow this? I've found some limited information suggesting that they do, but it's quite old.

Thanks.
 
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I had inquired about this one before for one of my clients. My information might be dated or incomplete. I would call the CME to confirm. I believe you can make two sided markets without registering as a MM unless your are sending 20,000 messages per day.
 
rmorse said:
I had inquired about this one before for one of my clients. My information might be dated or incomplete. I would call the CME to confirm. I believe you can make two sided markets without registering as a MM unless your are sending 20,000 messages per day.
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Extremely helpful. Thanks for letting me know, I should be less hesitant to call them in the future. I hear they're pretty helpful. I'll call at some point this week when school calms down. 20,000 is also the level at which the MEP messaging ratios are applied. Perhaps they're open to extra market making as long as it isn't done on a scale that could disrupt their best prop customers. So if it turns out I can in fact get away with this, the next step would be establishing what it takes to do mass quoting, because those are exempt from MEP and pretty much designed for market making. I think even with the two sided quotes, it might be very difficult to quote effectively without mass quotes. I'll ask them this week.
 
You should also be able to rely on your FCM for information also. We do business with FC Stone and they have a person there dedicated to member services at the exchanges. I still confirm everything with the exchange.
 
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