Exchange for Related Positions (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. 
  • For official definitions, eligible products and additional regulatory guidance please see the Market Regulation Advisory Notice on EFRPs.

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

EFRP Overview

Get an overview of Exchange for Related Position (EFRP) transactions for Equity Index products, including rules for entering EFRPs and more.

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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

How an EFRP is Reported

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.

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.

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.

Contact Us

For questions about submission via CME ClearPort, contact: 

The Global Command Center
US: +1 800 438 8616
Europe: +44 800 898 013
Asia: +65 6532 5010

For questions about submission via Front-End Clearing, contact: 

CME Clearing Services
+1 312 207 2525

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