Block Trades

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.