Clearing of Derived Block Trades Begins Sunday, May 22, 2022

As announced in Special Executive Report 8965, published April 14, 2022, effective Sunday, May 22, 2022 for trade date Monday, May 23, 2022, and pending all relevant CFTC regulatory review periods, CME and CBOT shall permit derived block trading for all of the CME E-mini S&P Select Sector Futures and the CBOT Dow Jones US Real Estate Index Futures contracts. These products are enumerated in Clearing Advisory 22-145 published April 14, 2022.

Derived block trades are Exchange futures transactions in an eligible equity index futures contract. Pursuant to derived block trades and CME and CBOT Rule 526. (“Block Trades”), a dealer consummates a block trade with a client where the price and quantity of the block trade depend on one or more hedging transactions by such dealer that takes place after the block trade has been consummated, but prior to the block trade submission for clearing to the Exchange. The block trade minimum threshold of derived block trades shall exactly mirror applicable and existing minimum block trade thresholds of the Exchange’s contracts.

For the full text of this advisory, please click here.