Parties to block trades on CME Group exchanges would be allowed to offset the expected results of the transactions, under a proposed rule change by the exchange operator.
Block trades are privately negotiated transactions that exceed a certain threshold number of contracts and that occur off the exchange but under its rules.
Currently, counterparties to such transactions aren’t allowed to “pre-hedge” the deals.
The exchange group announced the proposed rule change Oct. 25, the same day ICE Futures U.S. Inc. said a similar rule on its exchange would be effective Oct. 31.
ICE proposed its rule change in June, but ...
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