A Block Trade is a privately negotiated futures, options or combination transaction that is permitted to be executed apart from the public auction market. Participation in block trades is restricted to Eligible Contract Participants as that term is defined in the Commodity Exchange Act.
Rule 526 ("Block Trades") governs block trading in CME, CBOT, NYMEX and COMEX products. Block trades are permitted in specified products and are subject to minimum transaction size requirements which vary according to the product, the type of transaction and the time of execution. Block trades may be executed at any time at a fair and reasonable price.
Block trade reporting, submission and minimum threshold requirements are set forth in a CME & CBOT Market Regulation Advisory Notice for CME and CBOT products and in a NYMEX & COMEX Market Regulation Advisory Notice for NYMEX and COMEX products. Those notices are available on the Current Market Regulation Advisory Notices page, which may be accessed by clicking here.
If you have questions concerning block trades, please contact the Market Regulation Department at +1 312 341 7970 or one of the individuals listed in the above-referenced Advisory Notices.
Benefits of Block Trades
- Convenience of privately negotiating a trade with a selected eligible counterparty
- Ability to execute a large transaction at a fair and reasonable single price
- Security of a trade cleared by CME Clearing
- Designed to meet institutional trading needs
View Intra Day Block Trades
How a Block Trade Is Reported
- CME ClearPort*
Block trades may be electronically reported to CME Clearing via CME ClearPort. You must be registered in CME ClearPort as a broker to enter trades on your own, or as a trader if you are the designated party to a trade. The CME ClearPort demo provides an excellent introduction for registering and submitting ex pit transactions:
For information on reporting block trades through CME ClearPort, please contact customer service at +1 800 438 8616, via email at ClearPort@cmegroup.com, or visit: www.cmegroup.com/clearport
- Global Command Center ("GCC")
Almost all block trades may be reported to the GCC. The seller reports the trade by calling the GCC at +1 800 438 8616 within five minutes of execution. When the GCC is closed, the block trade must be reported no later than five minutes prior to the opening of the next electronic trading session for that product. The seller then has their clearing firm type the trade into Front End Clearing (FEC). Parties/executing brokers familiar with the block trade procedures designated by the Contacting firm can call trades into the GCC without ClearPort registration, although the exchange prefers parties who are ClearPort registered.
- Front End Clearing Systems
The Front-End Clearing System (FEC) is a web-based application that provides Clearing Member firm back office staff with an integrated method for entering/processing a variety of trade types, including:
- Exchange for Physicals (EFPs)
- Differential Spreads
- Electronic Trade Changes
- FLEX Options
- Packs and Bundles
- Pit Trades
Member staff can enter, modify and delete trade records using FEC. Give-up and Average Pricing functionality is available. For more information, please consult: http://www.cmegroup.com/clearing/systems-operations/front-end-clearing.html
Pivot Instant Markets- A New Way to Electronically Trade CME Group Weather Blocks
Pivot Instant Markets – the premier product in the OTC derivatives community for real-time communication and management of quote data – has partnered with CME Group to enable electronic submission of CME Group Weather block trades, resulting in significant benefits to traders:
- Greater efficiency from straight-through processing of transactions
- Reduced costs due to reduction of administrative efforts
- Ability to manage increased trade volume
- Access to the full benefits and financial safeguards of CME Group's central counterparty clearing
Learn more about Pivot Instant Markets