Client Management Advisory Notice
From | Client Management
Subject | Block Trading of FLEX Options � Tentatively Eligible at Month�s End
Effective Date | 04/12/01
Notice Number | NP#0106
Commencing about the end of April 2001 (a more definitive date will be announced as it becomes available), firms and their customers will be able to execute Block Trades on FLEX Options. Block trades are privately negotiated transactions at a minimum lot size as specified in the chart below, as approved by the Board of Governors. Eligibility is subject to the requirements of CME Rule 526. Please be aware that Block Trades on FLEX Options should require a minimum preparatory system effort, as they will be treated in the same manner as FLEX Options for bookkeeping purposes.
Block Trade Eligible FLEX Options | Minimum Lot Size
S&P 500, Nasdaq 100 * S&P MidCap 400, Russell 2000, S&P/Barra Growth, S&P/Barra Value, Nikkei 225 | 250 contracts
Trade Capture Block Trades on FLEX Options will be restricted to Regular Trading Hours (RTH) of 8:30 a.m. to 3:15 p.m. Trades must be reported to Trading Floor Staff within 5 minutes of execution as with all Block Trades; however, new unique reporting procedures pertinent to FLEX options will be forthcoming. TREX Confirm Records For firms that receive outbound TREX confirmation records, block FLEX options will be identified as Trade Type "1" instead of "9", so that the FLEX option block is not reported in bookkeeping and customer statements as an EFP. Firms that do not accept TREX confirmation records must ensure that block trades on options are not reported to customers as EFP trades. If you have any questions block FLEX options trades, please contact Lisa Amato at (312) 338-2654 or email lamato@cme.com. Thank you.