IFUS: Block Trading Exchange Notice and FAQ
IFUS has implemented block trade requirements for energy futures and options contracts effective Monday, October 15. This comes in connection with the transition of ICE OTC energy swaps to energy futures and options on IFUS.
IFUS announced that all energy block trades must comply with the same Exchange and CFTC requirements already in place for allowable block trades at IFUS. It is further noted that on Wednesday, October 17, IFUS will implement revised block minimums as detailed in this rule filing. This notice supersedes the October 12 Exchange Notice.
The attached FAQ covers the following issues:
- What is a block trade?
- What are the eligible contracts and the minimum threshold quantities for a block trade?
- Who may participate in block trades?
- Are there any price restrictions for block trades?
- Can any order which exceeds the minimum quantity threshold be executed as a block trade?
- What recordkeeping and audit trail requirements are attendant to a block trade?
- What are the trading hours for block trades?
- How are block trades reported?
- What are the procedures for entering a block trade in ICE Block?
- How do I obtain access to enter orders directly into ICE Block?
- Must block trades be brokered by an Exchange Member or Clearing Member?
- Who is responsible for reporting the execution time?
- May spreads or combination trades be executed as block trades?
- May block trades be given up?
- Can block trades be used to offset an option position after expiration?
- Can orders be bunched to constitute one side of a block trade?
- What fees are associated with block trades?
- Can Trade at Settlement ("TAS") trades be executed as block trades?
- What is a Sugar No. 11/LIFFE White Sugar Futures arbitrage block trade?
- Can Block Trades be executed between affiliated parties?
- What other execution alternatives are offered by ICE for Energy Futures and Options Contracts?
- Once a block trade is agreed upon, are there any restrictions on communicating trade details of the block trade with other counterparties?
- Rule 4.07. Block Trading.
See: IFUS Exchange Notice and FAQ (links externally to ICE website).