Exchange for Related Positions (EFRPs)

 
 

Types of EFRPs

EFRP transactions include the exchanges of:

  • Exchange for Physical (EFP) - A position in the underlying physical instrument for a corresponding futures position.
  • Exchange for Risk (EFR) - A position in an Over-the-Counter (OTC) swap or other OTC derivative in the same or related instrument for a position in the corresponding futures contract.
  • Exchange of Options for Options (EOO) - A position in an OTC option (or other OTC contract with similar characteristics) in the same or related instrument for an option position.

Benefits of EFPs, EFRs and EOOs

  • Add convenience of private negotiation
  • Reduce or eliminate basis exposure
  • Manage risk with CME Clearing, one of the world's leading central counterparty clearing providers
  • Straightforward trading method for parties with complementary objectives

All are privately negotiated trades transacted outside of the competitive marketplace, but submitted for clearing through CME Clearing.

How an EFRP is Reported

  1. An EFRP may be executed in any CME, CBOT, NYMEX or COMEX product subject to any guidelines applicable to that specific product. Learn more about Generally Accepted Related Position Limits
  2. Both parties to the trade must have an account at a Futures Clearing Member (Clearing Member or FCM).
  3. 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.
  4. Reporting must comply with the procedures outlined in CME Group RA1006-5. Note that EFRP transactions are not considered as having been accepted by CME Clearing until:
    1. They have been matched and cleared, and
    2. The first payment of settlement variation and performance bond has been confirmed.

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.

Time Requirements for EFRP Transaction Entry

Under no circumstances may EFRPs be posted later than end of permissible posting period following expiration of underlying futures contract.

FOR SUBMISSION VIA CME CLEARPORT FOR SUBMISSION VIA FRONT-END CLEARING (FEC)

When CME ClearPort is Open: Within one hour after relevant terms have been discussed

CME AND CBOT PRODUCTS

  • For EFRPs Executed 6:00 a.m.-6:00 p.m. Central Time/CT: Within one hour
  • For EFRPs Executed 6:00 p.m.-6:00 a.m. CT: No later than 7:00 a.m. CT
When ClearPort is Unavailable (4:15 pm – 5:00 pm CT and on weekends): Within one hour of when CME ClearPort next becomes available

COMEX and NYMEX PRODUCTS

  • For EFRPs Executed 6:00 a.m.-4:45 p.m. CT (7:00 a.m.-5:45 p.m. Eastern/ET): Within one hour
  • For EFRPs Executed 4:45 p.m.-6:00 a.m. CT (5:45 p.m.-7:00 a.m./ET:
    Must be submitted prior to 7:00 a.m. CT (8:00 a.m. ET)
Questions? Contact the CME Global Command Center: Questions? Contact CME Clearing Services:
About CME Clearport About CME Clearing - Front End Clearing
Generally Acceptable Related Position Instruments
 
 

Save on FX EFP Fees with New Program

 

Futures & Options Trading

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through the CME Globex electronic trading platform and trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort.

Idea Exchange

Idea Exchange is your direct link to the product managers, marketers, and the development teams who create cmegroup.com and will allow you to review functionality, participate in focus and provide feedback on upcoming Web initiatives

Idea Exchange - Join Our User Focus Program

Contact Us

CME Group/Chicago HQ:
Local: +1 312 930 1000
Toll Free: +1 866 716 7274

Global Customer Contacts

More CME Group Direct Lines
Phone list by department

Global Partnerships

Global

Global Offices Contact Information

 
Calgary Houston Chicago New York Washington São Paulo Belfast London Singapore Hong Kong Seoul Tokyo Beijing

© 2014 CME Group Inc. All rights reserved.

CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX, and COMEX.