Client Management Advisory Notice
From | Client Management
Subject | Block Trading of Options � Effective January 16, 2001
Effective Date | 12/21/00
Notice Number | CM#0056
Effective Tuesday, January 16, 2001, CME will offer the ability to trade blocks on specific option contracts. The following options will be eligible for block trading and in the minimum block transaction quantities specified:
| Futures | Options
Eurodollars | 2,000 contracts � limited to the 1st four quarterly contract months and to serial months. | 2,000 contracts
S&P 500, Nasdaq 100 * | N/A | 250 contracts
S&P MidCap 400, Russell 2000, S&P/Barra Growth, S&P/Barra Value, FORTUNE e-50, Nikkei 225 | 50 contracts | 250 contracts
Currencies including Euro FX, Japanese Yen, Swiss Franc, British Pound, Canadian Dollar, Mexican Peso, Australian Dollar, Brazilian Real, Deutsche Mark, French Franc, New Zealand Dollar, Russian Ruble, South African Rand* | N/A | 250 contracts
*NOT applicable to E-Mini stock indexes or E-Mini currencies Trade Entry Requirement There is a major difference in trade entry requirements for block trades on options. Block trades on options cannot be entered via the online EFP system like block trades on futures. Block trades on options must be entered via the Trade Entry System (TES) or submitted as TREX messages. However, like futures, the trade type must be reported as a type "9" and the order type must be reported as a type "B". For firms that receive outbound TREX confirmation records, block options will be identified as Trade Type "1" instead of "9", so that the 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. All other reporting requirements (e.g. notifying the Globex Control Center (GCC) within 5 minutes) will not change. A detailed Q&A will be forthcoming. If you have any questions on trade entry requirements for block trades on options, please contact Lisa Amato at (312) 338-2654 or email lamato@cme.com