EFRP transactions include the exchanges of:
All are privately negotiated trades transacted outside of the competitive marketplace, but submitted for clearing through CME Clearing.
An EFRP may be executed in any CME, CBOT, NYMEX or COMEX product subject to any guidelines applicable to that specific product.
Both parties to the trade must have an account at a Futures Clearing Member (Clearing Member or FCM).
If submitting via Front End Clearing (FEC), then subsequent to negotiation of EFRP, details must be provided to relevant FCM for reporting to the Exchange. If submitting via CME ClearPort, the transaction will be matched and sent directly to clearing from ClearPort provided the transaction does not exceed the pre-established credit limits of the counterparties to the EFRP.
Reporting must comply with the procedures outlined in CME Group RA1311-5RR (all Market Regulation Advisory Notices are located here). Note that EFRP transactions are not considered as having been accepted by CME Clearing until:
Note: The counterparties must follow the requirements of Rule 538 (Exchange for Related Positions) and any applicable CFTC regulations in conducting such trades, and in certain cases these trades must be approved in advance by the clearinghouse.
Under no circumstances may EFRPs be posted later than end of permissible posting period following expiration of underlying futures contract.
EFRP transactions should be submitted to the Exchange as soon as possible following agreement to the relevant terms by the parties to the trade. The Market Regulation Department expects submission to occur on the same day that the EFRP is executed absent extenuating circumstances.