Financially Cleared Transactions
HMX participants can execute over-the-counter (OTC) transactions on the HMX platform that can be financially cleared. Participants can select their clearinghouse of choice for the appropriate and related products between the CME ClearPort®, ICE Clear Europe or Nasdaq Futures. Functionally, cleared transactions are executed on HMX in the same manner as a bilateral transaction.
For execution of cleared transactions on HMX, participants must:
- Register with either CME ClearPort®, ICE Clear Europe or Nasdaq Futures
- Have an account in good standing with an approved FCM
- Separately agree to the terms and conditions of the HMX Platform User Agreement.
All transactions executed on the HMX Platform that are intended for clearing are submitted to either of the above clearinghouses through the HMX system on behalf of clearing participants by HMX Futures LLC. HMX Futures LLC is an approved Introducing Broker registered with the National Futures Association.
The respective clearinghouse for the specific product or contract executed sets margin requirements for cleared transactions conducted through HMX.
HMX Futures LLC operates as an Introducing Broker (“IB”) pursuant to the Commodity Exchange Act and is registered with the National Futures Association.
Following Commodity Futures Trading Commission regulations with respect to IB’s, HMX is subject to certain access, reporting and record-keeping requirements. All HMX participants must qualify as an Eligible Commercial Entity (ECE) pursuant to the Commodity Exchange Act.