LOX orders are matched, large-size S&P 500 options orders, presented to the trading pit, which support pre- execution discussions and offer a contingent cross-guarantee for brokers.
The order size must be equal to or greater than the minimum quantity threshold. For S&P 500 options, the minimum quantity threshold is 125 contracts.
LOX orders are allowed for S&P 500 option orders traded during regular trading hours on the trading floor.
LOX orders are floor-traded S&P 500 option orders that meet specific requirements, including:
The order is then invalid.
Members are prohibited from facilitating the execution of a LOX order if the designated LOX limit price of the order is not above the existing bid (in the case of a buy order) or below the existing offer (in the case of a sell order) at the time the LOX order is announced to the pit.
Provided that the order is eligible for execution as a LOX Order, the member executing the order must clearly announce to the pit:
Additionally, when announced, a trade indicator light will be turned on by exchange staff to indicate that a LOX order is in the crowd.
Yes. Prior to bidding or offering, a member or member firm that receives a LOX Order must solicit a contra party to take the opposite side of the order or agree to act as the contra party to the order. Parties involved in such solicitations shall not disclose the details of such communications to other persons or enter an order to take advantage of information conveyed during such solicitations except in accordance with this Rule.
Yes. LOX orders must be for a quantity that is at or in excess of the applicable minimum quantity threshold, such as 125 contracts. Orders may not be aggregated in order to achieve the minimum quantity necessary for execution as a LOX order.
Yes. A member shall not execute a LOX order for a customer unless such customer has specified that the order be executed as a LOX order and the order ticket includes specific instructions to execute a LOX order and the LOX limit price.
The contra-party may initiate a cross trade on a LOX order when the LOX designated limit price is reached, after trading against any bids or offers in the crowd that better the price requirements of the initiating LOX order, and after trading against any bids or offers in the crowd that match the price requirements of the initiating LOX order.
Yes. The member executing the LOX order must lift any existing offers (in the case of a buy order) or hit any existing bids (in the case of a sell order) that better the price requirements of the LOX Order until the designated LOX limit price is reached.
Once the designated LOX limit price is reached, any remaining quantity of the LOX Order up to one-fifth (20%) of the original full quantity of the LOX Order may be executed by the member opposite the solicited contra party at the designated LOX limit price.
The member shall then bid or offer any quantity that remains and shall immediately cross any quantity not immediately taken by another member in the pit.
Yes. Members must notify the designated Exchange official of any portion of the LOX order that is crossed at the designated LOX limit price.
Members must notify the designated Exchange official of any portion of the LOX order that is crossed at the designated LOX limit price.
Yes. If the trade has resulted in a cross, there will be a cross-trade identifier, “Y,” next to the price in time and sales.
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