Understanding "Ex-Pit" Transactions

Balancing CLOB Liquidity with Institutional Needs

This document is intended to explain ex-pit transactions including EFRPs and blocks as they are currently practiced in CME Group markets, using our interest rate futures contracts as the focus of this discussion. It’s important to recognize that CME Group strives to balance the needs of firms that provide liquidity in the central limit order book (CLOB), as represented by the market on the CME Globex electronic trading platform, with the needs of institutions, maintaining a liquid, orderly and transparent marketplace under a wide variety of market conditions.

It covers:

  • Ex-Pit Transactions
  • What is an EFP?
  • Offsetting Cash Position
  • Block Trades
  • How to Transact?
  • Who Trades "Ex-Pit" and Why?
  • Value of Transparent Pricing

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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.