Trade Types

OTC Products Cleared as Futures

Block

A Block trade is a privately negotiated futures, options or combination transaction that is permitted to be executed apart from the public auction market. Participation in block trades is restricted to Eligible Contract Participants as that term is defined in the Commodity Exchange Act. Blocks provide:

• 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

• Customization to institutional trading needs

TAS Block

Trade at Settlement (TAS) Block trade is a block trade executed in a TAS-eligible product and contract month. The price of the TAS trade would be the settlement price for the particular product and contract month.

Exchange for Physical (EFP)

An Exchange for Physical (EFP) is a position in the underlying physical instrument for a corresponding futures position. EFPs provide:

• Added convenience of private negotiation

• Reduced or eliminated basis exposure

• Managed risk with CME Clearing, one of the world's leading central counterparty clearing provides
  A straightforward trading method for parties with complimentary objectives. 

Exchange for Risk (EFR)

An Exchange for Risk (EFR) is a position in an Over-the-Counter (OTC) swap or other OTC derivative in the same or related instrument for a position in the corresponding futures contract.

The benefits are the same as an EFP.

Exchange of Options for Options (EOO)

An Exchange of Options for Options (EOO) is a position in an OTC option (or other OTC contract with similar characteristics) in the same or related instrument for an option position.

The benefits are the same as an EFP and EFR.

OTC Products Cleared as OTC

OTC Privately Negotiated Trades (OPNT)

Privately Negotiated Trade. A true swap trade, where a bilateral swap comes in for clearing. Starts as a swap trade between participants, and after clearing, original trade is terminated and replaced with two cleared swaps, one between Counterparty A and CME, and the other between CME and Counterparty B.

Swap Block

A cleared swap trade that is above the CFTC prescribed Block limits, and occurs under the rules of a SEF or DCM. Swap Blocks can qualify for certain time delays in market data dissemination through the SDRs, and for certain products allow for additional flexibility of execution (e.g., qualify for Permitted execution methods instead of Restricted methods).

Large Notional Off-Facility Swap

Similar to a Swap Block, a cleared swap trade that is above the CFTC prescribed Block limits, but occurs outside the rules of a SEF or DCM (“Off-Facility”). This transaction type also qualifies for SDR market time delays and flexibility in execution.