ICE Exchange Notice: Guidance on Private Negotiation Requirement Applicable to EFRP Transactions

The IntercontinentalExchange's ("ICE") Market Regulation Department issued an Exchange Notice to provide guidance on the use of electronic systems in connection with Exchange for Related Position ("EFRP") transactions under ICE Rule 4.06. Rule 4.06 permits the execution of privately negotiated EFRP transactions which meet all requirements set out in the Rule regarding the simultaneous exchange of a futures position for a corresponding related position. According to the notice, it is inconsistent with Rule 4.06 to facilitate the execution of EFRP transactions in exchange-traded products on a system which is accessible to multiple parties and which allows for the electronic matching or acceptance of anonymous bids and offers, therefore violating the privately negotiated standard required in the Rule.

See: ICE Exchange Notice.