Accepted Trade Types
Clearing members can enter and price a variety of trade types.
– Block Trades –
Privately-negotiated futures or option transaction executed apart from the public auction market (ex-pit transaction). The block trade has the minimum order size requirement.
The Company’s Support Center (SC) is available to facilitate submission of Block trades. Contact us for the details.
– Differential Spread –
Clearing software allows simple futures calendar spreads to be matched at a differential price. The buyers and sellers set the leg prices as they see fit. The only requirements are that the leg prices remain within the spread range established for that trading day, the leg prices are at the product tick level, and the prices conform to the differential price.
A Calendar spread consists of two instruments with the same product with different maturity months. The individual contracts that institute a single spread are referred to as the legs of the spread.
– Exchange for Related Positions (ERP) –
ERP transactions are ex-pit privately-negotiated transactions that allow traders to initiate or liquidate futures position(s) by completing a simultaneous purchase or sale of the actual underlying cash commodity with an opposite purchase or sale of the underlying futures contract.
ERP transactions, also known as exchange futures contracts for related cash, include:
– Exchange for Physical (EFP) – A position in the underlying physical instrument for a corresponding futures position.
– Exchange for Risk (EFR) – 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.
– Exchange of Options for Options (EOO) – A position in an OTC option (or other OTC contract with similar characteristics) in the same or related instrument for an option position.
– Fungibles –
Fungibles refer to goods, securities, or instruments that are equivalent and, therefore, interchangeable. The fungible offset functionality allows to offset specific contracts with the counterparts at a specified ratio.
– Transfers –
Firms use transfers to move trades from one account to another or to correct errors for a variety of reasons. Contact us for more information about the conditions under which transfer trades can be submitted.