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 CME Group RA1311-5RR. 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