• Block Trades

      • To
      • Members, Member Firms and Market Users
      • From
      • Market Regulation Department
      • #
      • RA1908-5
      • Notice Date
      • 26 August 2019
      • Effective Date
      • 01 October 2019
    • Effective on trade date Tuesday, October 1, 2019, and pending all relevant CFTC regulatory review periods, this Market Regulation Advisory Notice will supersede CME Group Market Regulation Advisory Notice RA1906-5 from May 17, 2019. It is being issued to:

      •  Codify that block trade strategies involving a CME Group Exchange product and the product of any non-CME Group exchange are considered an outright transaction at the relevant CME Group Exchange (Section 5);

      •  Codify circumstances in which the Chief Regulatory Officer or his designee may permit block trades to be executed at less than the block trade minimum threshold (Section 6);

      •  Clarify that block trades may be reported to the CME ClearPort Facilitation Desk/Global Command Center via email at FacDesk@cmegroup.com (Section 7);

      •  Clarify that the time of execution of a block trade is the time that the trade is consummated, which is the time that the parties agree to the trade in principle (Section 7);

      •  Amend Section 11.a. to provide additional guidance for brokers receiving permission to disclose their customers’ identities; and

      •  Amend Section 11.b. to provide additional guidance for parties that engage in pre-hedging.

      Click HERE for full advisory.