CME Membership Process

Process

The entire membership application process takes approximately six weeks to complete. You will be contacted by letter or telephone with details regarding your scheduled attendance at a one week New Member Orientation program (unless you are trading electronically only) which is required of all new members who want access to the trading floor. Approximately three weeks after your application has been received, a staff person from the CME Membership Department will contact you by letter or telephone to schedule an interview to review your application and prepare your final documents for consideration by the Director of the Department and/or the Membership Committee ("Committee").

It is mandatory that all floor access applicants to register with the NFA as either a floor broker or floor trader. An NFA application may be obtained from the NFA website located by clicking here. You will not be permitted to trade on the CME trading floor until you have obtained registration as either a floor broker or a floor trader (which can take approximately six) or until you have obtained a temporary license to act as such from the NFA. If you have specific questions regarding your NFA application, you may contact the NFA directly at (312) 781-1410.

• The CME waiver of the training requirement and access to the Floor document: This document informs the CME that you are waiving your training class because you will be trading electronically and will not need physical access to the CME trading floor, registration with the NFA, or travel to Chicago for the class.
• The CME Electronic Access Consent Form: This form is required for you to obtain special temporary membership privileges available to electronic traders only. You must be applying with non-trading floor access as described in the overview as "Expedited Timing for Screen Based Traders Only". This form represents that if you are not approved for membership that the financial benefits that you receive now will have to be refunded by you to the exchange.
• The letter from your CPA: If you chose option 2 for your personal financial statements, and elect to not provide financials, you instead must provide a letter from your CPA that states your net worth in excess of some number you are comfortable disclosing.
• The 106D form if you are planning to lease a seat
• The bid to purchase membership interest form: If you are planning to purchase a seat, you must complete this form with bid price and designate which seat you want to purchase.
• The explanation of how you intend to finance your trading if you are leasing: If you will be leasing a membership, provide a letter explaining how you intend to finance your trading, if from a source other then your own personal funds. For example, if you are receiving a loan, who is loaning you the money? What is your relationship? What are the terms of the loan? Is it a standard or a non- recourse loan? If you are receiving an unconditional guarantee by an equity member, who is the guarantor and what is your relationship? Please be aware that both you and the guarantor must be qualified to trade by the same clearing member and that you must file an Unconditional Guarantee form with the Department.
• Any separate papers you used to provide support for any "YES" answers on the application: You may or may not have needed any separate pages.
• Business history additional papers: You may or may not have needed any additional business history pages.
• Copies of bank statements, brokerage statements, property tax statements or appraisals: If you elected to have a CPA provide you with a representation letter about your assets, then these documents are not needed.
• Your financial statement requirements can be met two ways.

Option 1:

Present financial data and substantiate all numbers on your asset side of your balance sheet with backup such as statements, or appraisals. Each and every asset that you list on your balance sheet MUST be substantiated with some form of third party backup. If you are uncomfortable disclosing all of your assets, and you choose to understate your assets, please note that you are authorizing the CME to obtain credit information and if you have substantially more debt than assets, your application may be delayed or denied. Please provide account numbers and/or statements for all bank and/or brokerage accounts as well as any documentation to verify the value of any real estate owned such as tax statements or appraisals. There is no minimum or maximum financial requirement to be approved for membership. The CME is attempting to verify your ability to financially support your trading, so please be diligent in indicating and substantiating what you feel comfortable disclosing in order to be approved.

Option 2:

Present personal financials is to have your CPA write a letter attesting or stating that your net worth is greater than or at least an amount to cover your debt. You will not need to provide any financials other than this representation letter from your CPA. This way you can avoid listing and substantiating all or some of your assets.