Equity Index Options Blocks

Capital-efficient Equity Index exposure, in more ways

Get expanded access to deep E-mini Equity options liquidity with options blocks trading, allowing market participants to privately negotiate and execute large trades. Block trading enable participants to replicate certain trades traditionally executed in OTC markets or via other venues, but with greater flexibility, cost-efficiency and the benefits of centralized clearing at CME Group. Block trading is available for E-mini S&P 500 (ES) and E-mini Russell 2000 (RTY) options.

Coming January 24: Options on E-mini Nasdaq-100 futures (NQ) will be eligible for block trading, with a minimum block threshold of 60 contracts per leg.

View the Special Executive Report (SER) for more information.

Understanding delta-neutral equity options blocks

  • E-mini Equity Index futures can be blocked as part of a delta-neutral E-mini Equity options on futures block trade.
  • 100% of the trade can be privately negotiated and consummated, and subsequently reported to CME Group.1
  • Each S&P 500 option leg in a block trade must satisfy the 250-contract minimum and each Nasdaq-100 option leg in a block trade must satisfy the 60-contract minimum.2
  • Reporting time window now extended from 5 to 15 minutes during non-US hours for all block-eligible equity index futures and options products.3

Introduction to Equity Index options blocks

Get to know the fundamentals of block trading Equity Index options and review a trade example with E-mini S&P 500 options blocks.

Key benefits

Increase capital efficiency

Save with margin offsets on listed, delta-neutral covered futures and options block trades for relief from common OTC charges related to Basel, RWA, and SLR.

Manage exposure with no break-up risk

Mitigate counterparty credit exposure and get a 100% match guarantee with a delta-neutral covered options block at CME Group. The trade is bilateral with no need to expose the trade.

Reduce paperwork

No ISDA or CSA documentation is required to execute a covered futures and options block trade at CME Group, making more seamless execution possible.

Get a delta-neutral proxy for OTC combos

Trading delta-neutral is the preferred convention for larger Equity Index options trades requiring capital commitment. Covered options block trades can replace the need for an OTC synthetic combo.

View a delta-neutral block trade ticket in CME Direct

More on Equity Index options

Five reasons to trade E-mini S&P 500 options

Find out why market participants continue to turn to the deep, around-the-clock liquidity of E-mini S&P 500 (ES) options

Equity Index block alerts

Stay informed of all E-mini equity options block trade activity by signing up for block alerts.

A new way to access S&P 500 liquidity

Understand the main features of ES options blocks, including confidentiality while trading, reduced slippage, and flexibility in hedging large S&P 500 exposure.

E-mini Equity Index options block quick reference guide

Learn the fundamentals of E-mini Equity options blocks and view a list of resources to get started.

Questions? Contact us

Sources

  1. http://www.cmegroup.com/rulebook/files/cme-group-Rule-526.pdf
  2. While the number of covering futures contracts can be below the option leg minimum, the delta of the futures contracts must equal the net delta of the option legs.
  3. Non-US trading hours are between 4pm-7am CT Monday-Friday on regular business days and at any time on the weekends.

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