Relationship-based trading, encompasses communication between market participants for the purpose of discerning interest in and facilitation of executing a transaction. Trades resulting from relationship-based trading include block trades and cross trades on CME Globex. These types of transactions are allowed across all other asset classes at CME Group and are highly regulated.
With relationship-based trading, participants can enter into conversations with other market participants that include discussion of the price, size and direction of an order that may lead to one of two very distinct types of transactions: crossing on CME Globex and block trades.
Detailed information concerning the requirements for entry via a Globex cross is available in the Market Regulation Advisory Notice on pre-execution communications regarding CME Globex trades.
Block trades are governed by Rule 526 (Block Trades) and the Market Regulation Advisory Notice concerning block trades. Detailed information on block trade requirements is available in the Market Regulation Advisory Notice on Block Trades.
There are multiple characteristics of blocks and crosses. View the table below to understand the differences.
|Request for Quote (RFQ) Required||N||Y|
|Participant||Eligible Contract Participant||All|
* G-Cross also allowed for Agricultural futures