| Abandon |
To elect not to exercise an option contract. The holder of a long option position has the right to exercise or abandon an option contract. Same as "expire". |
| Act |
The Commodity Exchange Act (1936) as amended by the Commodity Futures Trading Commission Act of 1974. |
| Allocation Claim System (ACS) |
CME's electronic give-up system. ACS allows executing firms to give-up (allocate) trades at the execution price to the designated carrying firms(s), utilizing their current trade entry systems and CME's Trade Management System. ACS may be utilized for trades executed and given up to a single firm, as well as trades given up to multiple firms (see Give-up System). |
| American Terms |
A currency pair quoted as the number of US Dollars required to buy one unit of a foreign currency. |
| American-style option |
Type of option contract that can be exercised at the buyer's discretion on any trading day up to and including the expiration date. This differs from a European style option, which may only be exercised on its expiration date. |
| American-style options |
Options that permit exercise at any time on or before the expiration date. |
| AON (all or none) |
At order entry, if the order can execute in total, then it executes. Otherwise it stays in the order book until it can execute in total. |
| AON (all or none) - Open Outcry |
At order entry, if the order can execute in total, then it executes. Otherwise it stays in the order book until it can execute in total. |
| API |
Application program interface (API); the specific method prescribed by a computer operating system or by an application program by which a programmer writing an application program can communicate with the operating system or another application. |
| Appreciation |
A rise in a currency's value. |
| Approved Delivery Facility |
Any bank, depository, stockyard, mill, warehouse, plant or elevator authorized by the Exchange for delivery of Exchange contracts. |
| Approved Warehouse |
Any warehouse which has been officially approved by the exchange and from which actual deliveries of commodities may be made on futures contracts. |
| Arbitrage |
The simultaneous purchase of cash, futures, or options in one market against the sale of cash, futures or options in a different market in order to profit from a price disparity. |
| Arbitrage Account |
An account of a Class B CME clearing member containing transactions in foreign exchange as a result of a specific arrangement between the member and its approved bank; the member has simultaneously taken a position with the bank opposite to the International Monetary Market (IMM) transactions contained in said account. |
| As-of trade |
An unmatched trade from a previous day that is resubmitted to the CME clearing system; trade is submitted "as of" the original trade date. |
| Ask |
Also called "offer." Indicates a willingness to sell a futures or options on futures contract at a given price. |
| ASP |
Application service provider (ASP); a company that offers individuals and firms access via the Internet to applications and related services that would otherwise have to be located in their personal computers. |
| Assignment |
The designation of an option writer for fulfillment of his obligation to sell the underlying futures contract (call options writer) or buy the underlying futures contract (put option writer) upon notice from the Clearing House. Notice to the seller of an option that has been exercised by the buyer. |
| Assignment (Options) |
The process by which the CME clearing house, in response to a long exercising its option, randomly selects a seller to fulfill its obligation to buy or sell the underlying futures contract at its strike price. The assigned seller of a put must buy the underlying futures contract; the assigned seller of a call must sell the underlying futures contract. |
| Assignments (Delivery) |
The process by which the CME clearing house selects the long position to accept delivery on a contract for which a seller has submitted a delivery notice. |
| Associated person (AP) |
A person, commonly called a commodity broker, associated with and soliciting customers and orders for a futures commission merchant or introducing broker. The AP must pass a Series 3 examination, be licensed by the Commodity Futures Trading Commission and be a member of the National Futures Association. |
| At-the-money |
An option with a strike price equal to the underlying futures price. |
| ATM |
Asynchronous Transfer Mode; the international standard for cell relay in which multiple service types (such as voice, video, or data) are conveyed in fixed-length (53-byte) cells. Fixed-length cells allow cell processing to occur in hardware, thereby reducing transit delays. ATM is designed to take advantage of high-speed transmission media. |
| ATS |
Automated trading system (ATS); a case in which a computer makes decisions and enters orders without a person entering those orders. This is a programmatic way of representing the trader. |
| Average daily volume |
Volume for a specified time period divided by the number of business days within that same time period. |
| Average Price System (APS) |
CME Rule 553 enables clearing firms, in defined circumstances, to confirm average prices when multiple prices are received on the execution of an order or a series of orders ("series averaging") during a single trading session. The APS is the vehicle through which the exchange computes an average price. Firms then allocate such trades (at the average price) to the carrying firm(s) or may sub-allocate those trades to customer accounts on their books. |
| Average Temperature |
The average of a day's high and low temperatures, from midnight to midnight. |