Block Trades in Agricultural Products

Block trades are privately negotiated futures and option trades between two eligible counterparties which are subsequently submitted to CME Clearing. 

Resources

Contact Us

 agrbt@cmegroup.com

Benefits of Block Trades

  • Convenience of privately negotiating a trade with a selected eligible counterparty
  • Ability to execute a large transaction at a fair and reasonable single price
  • Security of a trade cleared by CME Clearing
  • Designed to meet institutional trading needs

Block trades are governed by Rule 526 (Block Trades) and the Market Regulation Advisory Notice concerning block trades. Specific eligibility requirements and minimum volume thresholds apply to block trading. Detailed information on block trade requirements is available in the Market Regulation Advisory Notice on Block Trades.

View the MRAN

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    Who Can Use Block Trades?

    Participation in block trades is restricted to Eligible Contract Participants as defined in the Commodity Exchange Act.

    Thresholds and Reporting Times

    Block trades are permitted in specified products and are subject to minimum transaction size requirements which vary according to the product, the type of transaction and the time of execution.

    There are two threshold time frames: 8:30 a.m.- 1:30 p.m. Central Time (CT) (RTH) which reflects traditional trading hours; and a second timeframe that covers everything outside of the 8:30 a.m.- 1:30 p.m. CT timeframe (ETH/ATH).

    View minimum thresholds

    How to Report a Block Trade

    Block trades must be submitted via CME Direct or CME ClearPort. 

    Register for access to CME Direct. 

    Learn how to book a block in CME Direct.

    Learn more about Directed Request For Quote.

    Learn more about CME ClearPort.

    Pricing a Block Trade

    There are several requirements for pricing a block trade. A block trade must:

    • Be fair and reasonable based on the size of the block, market conditions in the contract and related products, and the circumstances of the market and parties to the trade
    • Trade in minimum tick increments
    • Adhere to all established price limits

    Block trade can be traded to reflect that day’s settlement price (TAS) on TAS eligible products. 

    Viewing a Block Trade

    You can view block trades on:

    • CME Direct, which offers a live block trade window
    • CME Group App, available through iTunes
    • CME Group website at cmegroup.com/block trading

    Block Fees

     

    ClearPort

    Grain & Oilseed Member

    $1.20

    Grain & Oilseed Non-member

    $2.95

    Livestock & Dairy Member

    $1.90

    Livestock & Dairy Non-member

    $3.03

    For a list of all products and membership types, see the appropriate DCM fee schedule.

    More in Relationship-Based Trading

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