Submitting blocks electronically offers customers an efficient, lower cost and faster means of booking deals into CME Clearing. It helps reduce operational risk and increases real-time visibility to the marketplace. CME Group encourages all customers who submit blocks to transition their deal entry workflow to electronic submission.
CME Direct is the front-end application to submit block trades to CME Clearing by utilizing functionality where you can report and clear in one simple step.
There are a number of advantages to submitting blocks electronically.
Currently CME Group is encouraging all customers to transition their block deal submission to electronic entry. In the near future, CME Group will require all blocks be submitted electronically.
Yes, once successfully cleared, trade details will be available through CME STP. If you already receive block trades this way, moving to CME Direct for submission will reduce the time waiting for this information.
As a broker, you will need to be registered with CME Direct. Your customers may also need to be registered on CME Direct if they are not already.
Customers must be registered either by self-registering with CME Group or by having their broker or clearing firm register on their behalf (third-party registration). There are also other registration choices such as Short Code or Client Risk Master Accounts, which may increase flexibility in customer registration.
Once you have completed the firm registration, you will need to work with your trade support staff, firm administrator and your FCM directly to set up registered accounts within the CME Account Manager tool.
You may fulfill reporting obligations for other allowable privately negotiated transactions, such as EFRPs, via CME Direct. If you have any questions on what products are supported, you can view them at the link below, or call the GCC.
If necessary, block trades can be corrected (canceled or re-booked) Top Day by the submitting broker or trader leveraging features available in CME Direct. Trade corrections can be facilitated up to T+3 by the GCC. For more information, please consult Rule 808.H. and the Market Regulation Advisory Notice on block trades for the correct process to do so. The GCC is always available to help with this process.