Designed to provide customers with increased trading choices, block transactions may be executed by eligible parties on or off CME trading floors.
For Eurodollar interest rate futures, block trading will be permitted for individual contracts and recognized spreads or combinations in the first four quarterly and serial Eurodollar futures with a minimum order size of 2,000 contracts.
For individual contracts and recognized spreads or combinations on the S&P Mid-Cap 400, S&P 500/Barra Growth and Value indexes, Russell 2000, FORTUNE e-50 Index™ and Nikkei 225, block trading will be permitted with a minimum order size of 50 contracts.
Block transactions must be reported to a designated CME official within five minutes of execution. Also, they must be priced at “fair and reasonable” levels in light of the size of the transaction and the circumstances of the parties to the transaction.
Eligible participants include exchange members and member firms, broker/dealers, government entities, pension funds, commodity pools, corporations, investment companies, insurance companies, depository institutions and high net worth individuals. In addition, Commodity Trading Advisors (CTAs) and registered investment advisors — with net assets under management of at least $25 million — may also conduct block transactions.
