| iLink |
An interface to the CME Globex electronic trading platform. |
| IMM Division |
The International Monetary Market Division of CME. Holders of the membership interest associated with Chicago Mercantile Exchange Holdings Inc. Class B-2 Stock, who have been elected to membership are members of the IMM Division ("IMM members"). |
| Implied volatility |
The anticipated standard deviation or anticipated magnitude of price volatility for an FX futures contract implied by the current market value of an FX option. |
| In-the-money |
A call option with a strike price lower (or a put option with a strike price higher) than the current market value of the underlying futures commodity. |
| Independent Software Vendor (ISV) |
A vendor who makes and sells software products that run on one or more computer hardware or operating system platforms. At CME, ISVs provide front-end applications certified by CME for trading on the CME Globex platform. |
| Index |
An indicator that is representative of a whole market or market segment, usually computed by a sum product of a list of instruments' current prices and a list of weights assigned to these instruments. The index variations give trends of the market/market segment measured. |
| Indirect Quote |
Price of the domestic currency in terms of the foreign currency. |
| Indirect Rate Parity |
Forward premium (or discount) that is dependent on the interest rate differential between two currencies. |
| Inflation |
An economic term describing conditions in which overall prices for goods and services are rising. |
| Infrastructure |
The underlying framework of an organization or system, including organizational structures, policies, standards, training, facilities, and tools, that supports its ongoing performance. |
| initial (first) inventory day |
The first day in which longs are obligated to report their long positions via the CME Clearing Deliveries system for delivery purposes. |
| Initial margin |
See initial performance bond. |
| Initial Margin (Initial Performance Bond) |
The funds required when a futures position (or a short options on futures position) is opened. See "performance bond." |
| Initial performance bond |
The minimum deposit a clearing firm must require from customers for each contract, when an account is new or when the account's equity falls below CME Clearing minimum maintenance requirements. The contract specifications indicate the amount of this deposit for futures contracts. Previously referred to as initial margin. |
| Instrument |
A product traded at CME, i.e., the CME S&P 500 Index futures contract. |
| Inter exchange spread |
A spread that consists of a position at one exchange and an offsetting position for the same or a related commodity at a different exchange. |
| Inter-commodity spread |
A spread that consists of offsetting positions in two or more commodities -- involving the simultaneous purchase of the same month of different but related futures contracts. |
| Inter-delivery spread |
A spread trade involving the simultaneous purchase of one delivery month of a given commodity futures contract and the sale of another delivery month of the same contract on the same exchange. See spread trade. |
| Inter-market spread |
A spread trade involving the simultaneous sale of a given delivery month of a futures contract on one exchange and the purchase of the same delivery month of the same or a related commodity on another exchange. Also called an inter-exchange spread. |
| Interbank rates |
The price that major banks quote each other for currency transactions. |
| Interest Earning Facility 2 (IEF 2) |
CME Clearing program developed to support the acceptance of money market mutual fund shares at CME to be used as performance bond collateral and to satisfy security deposit requirements. |
| Interest Earning Facility 3 (IEF 3) |
CME Clearing House collateral program designed to allow clearing firms to satisfy core, reserve and concentration performance bond requirements with a wide range of collateral, consistent with CFTC Regulation 1.25. This program has a daily unwind of cash and securities. |
| Interest Earning Facility 4 (IEF 4) |
CME Clearing collateral program designed to allow clearing firms to satisfy core, reserve and concentration performance bond requirements with a wide range of collateral, consistent with CFTC Regulation 1.25. |
| Interest Earning Facility 5 (IEF 5) |
CME Clearing program in which clearing members can earn a monthly hard dollar benefit by depositing US dollar cash in a CME bank account at a select financial institution. Clearing members can satisfy a portion of their core and all of their reserve and concentration requirements by directing cash deposits into CME's account. |
| Intra-commodity spread |
A spread that consists of opposite positions in the same commodity in different contract months. An intra commodity spread may involve contracts of the same year or of different years. Also see calendar spread. |
| Intra-market spread |
A spread trade involving the simultaneous purchase of one delivery month of a given commodity futures contract and the sale of another delivery month of the same contract on the same exchange. Also called an inter-delivery spread. |
| Intrinsic value |
The relationship of an option's in-the-money strike price to the current futures price. For a put: strike price minus futures price. For a call: futures price minus strike price. |
| Introducing broker (IB) |
A firm or person engaged in soliciting or accepting and handling orders for the purchase or sale of futures contracts, subject to the rules of a futures exchange, but not in accepting any money or securities to margin any resulting trades or contracts. The IB is associated with a correspondent futures commission merchant and must be licensed by the CFTC. |
| Investigative and Hearing Committees |
The investigative and hearing committees of the Exchange are the Business Conduct Committee, the Clearing House Risk Committee, the Pit Committee, the Pit Supervision Committee, the Probable Cause Committee and such other committees created for this purpose by the Board. |
| IOM Division |
The Index and Option Market Division of CME. Holders of the membership interest associated with Chicago Mercantile Exchange Holdings Inc. Class B-3 Stock, who have been elected to membership are members of the IOM Division (IOM members). |
| IOP |
CME Indicative Opening Price. Calculated in real-time during pre-opening phase, each time an order is entered / modified / cancelled. Maximizes the quantities to be traded while minimizing the non-executed quantities. |
| ISV |
Independent software vendor. ISVs make and sell software products that run on one or more computer hardware or operating system. |