EFRP transactions include the exchanges of:
All are privately negotiated trades transacted outside of the competitive marketplace, but submitted for clearing through CME Clearing.
Both parties to the trade must have an account at a Futures Clearing Member (Clearing Member or FCM).
EFRPs submitted via CME ClearPort or CME Direct, the transaction will be matched and sent directly to clearing from ClearPort and CME Direct provided the transaction does not exceed the pre-established credit limits of the counterparties to the EFRP.”
Reporting must comply with Rule 538 and the associated Market Regulation Advisory Notice on Exchange for Related Positions.
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.
Under no circumstances may EFRPs be posted later than end of permissible posting period following expiration of underlying futures contract.
EFRP transactions should be submitted to the Exchange as soon as possible following agreement to the relevant terms by the parties to the trade. The Market Regulation Department expects submission to occur on the same day that the EFRP is executed absent extenuating circumstances.