Block Orders are executed in accordance with Rule 312. Block Orders are privately negotiated transactions which must meet the following conditions:
- The parties to a Block Order transactions must be Eligible Contract Participants as that term is defined in Section 1(a)(12) of the Commodity Exchange Act, as amended.
- The order must specifically state that it is to be executed as a Block Order and be for at least the minimum number of lots specified by the Exchange, i.e., 30 lots.
- The price at which the Block Order is executed must be fair and reasonable given (a) the size of the trade, (b) the price and size of other trades in the same contract, (c) the price and size of trades in other relevant markets and (d) the circumstances of the parties to the trade.
- The Block Order may not set off conditional orders.
- The selling member of the Block Order must report the trade to a designated Exchange official within two (2) minutes of the time of execution or, if the trade is executed between 4:15 p.m. NYT and 9:30 a.m. NYT, during the opening call on the next Exchange business day in New York.
- Floor brokers executing the Block Order must record the trade on their trading cards, and all executed Block Orders must be cleared through clearing members.
The New York Board of Trade (NYBOT) is the parent company of the Coffee, Sugar and Cocoa Exchange, Inc. (CSCE) and the New York Cotton Exchange (NYCE). Through its two exchanges and their subsidiaries and divisions NYBOT offers an expanding range of agricultural, currency and index products. Information about the New York Board of Trade can be found at www.nybot.com
