Certification Process
Certification to use CCS multilateral compression in the production environment is accomplished by interacting with the CCS in the Cboe Exchange certification environment under the direction of the Cboe Trade Desk. TPHs must demonstrate the ability to properly construct formed position and constraint input files as specified later in this document. Prior to successful certification, TPHs will be unable to interact with the CCS in the production Cboe Exchange firm portal. Once a TPH has successfully certified, they will be able to select multilateral compression while uploading compression submission files, otherwise the option will be disabled and they will not be able to participate.
The certification processes must be completed by at least one authorized firm login. Certification does not require that all registered firm logins complete the certification process. It is assumed that knowledge is distributed at the certifying firm and that all authorized firm logins are able to use and operate the service as a result of successful certification. It is assumed that firm-side systems used to generate formatted input to the CCS are generally automated, and once demonstrated compatible with the CCS service they will remain so. TPHs are advised to test major firm-side input file generation changes in the Cboe Exchange certification environment.
TPHs will not be allowed to begin certification until they have provided clearing information as part of the registration process (see above section on Service Registration). TPHs submitting files for multilateral compression will be expected to specify valid theoretical option prices for each position, max cost and max cost per unit benefit constraints, and one or more custom constraints demonstrating the ability to specify per-expiration and cross-expiration (e.g., full portfolio or bucketed expirations) risk exposure constraints with reasonably specified minimum and maximum values.
As part of certification for multilateral compression, TPHs will join a multilateral compression process running in the certification environment to demonstrate the ability to upload properly structured input files, the ability to download detail and trade level output files (specified later in this document) and to successfully approve the portfolio through CCS portal functionality. Successful approval of the portfolio requires a form of two-factor authentication where TPHs enter an approval token embedded in the detail output file as described later in this document.