Notice to Members NTM2017-49


Date: September 14, 2017
Re: Release of Risk Control & Retiring of OCX.RiskMan
Effective Date: September 14, 2017
 
OneChicago, LLC (“OneChicago”) is issuing this Notice to Members (“NTM”) 2017-49 to inform market participants of the release of Risk Control, a new user interface for managing risk, effective September 14, 2017, and the eventual retiring of OCX.RiskMan effective November 10, 2017.
 
What functionality did OCX.RiskMan provide?

OCX.RiskMan provided designated risk managers the ability to modify three distinct risk parameters (Maximum Contract Size, Maximum Notional Value Limit, and Aggregate Notional Value Limit-Daily) as well as upload a CSV containing a restricted securities list.
 
What does the new Risk Control do?

Risk Control mirrors most of the same functionality as OCX.RiskMan. Risk Control supports the modification of the three risk controls listed above, as well as a near real-time update of cumulative notional value used by the risk group. New to Delta1 risk controls is the support for price banding by way of upper and lower limit enforcement. These parameters assess the percentage difference of the inbound order price against the fair-value (reference) price of the attempted product. In addition to maintaining risk controls, risk managers are also provided with two simple widgets that display all other risk managers assigned to the risk group, as well as a near real-time table of Delta1 trading sessions assigned to the risk group (with a login indicator).
 
What functionality was not ported over from OCX.RiskMan?

OneChicago has removed the restricted list functionality from the user interface. The Exchange encourages all risk managers to participate in the restricted list SFTP service. For more information regarding this service, please visit the Technical Specification for the Restricted List File.  In order to submit a file to the exchange, you must register for an SFTP account. Please have an authorized representative of the firm complete the SFTP Subscription Form and submit by email to operations@onechicago.com.
 
So, when can I use Risk Control?

Risk Control is already available for use.  In order to access Risk Control, please complete the Risk Group Supplement on the Session Request Form and by email to operations@onechicago.com.
 
Will OCX.RiskMan still be available?

Yes. OCX.RiskMan will be available until November 10, 2017.
 
Can risk managers update their upper and lower limits before migrating to Risk Control?

Before migrating to Risk Control, upper and lower limits can be updated by sending an email to operations@onechicago.com. This email must come from an approved risk manager.

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If you have any questions, please contact OneChicago Operations at (312) 883-4311 or operations@onechicago.com.