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Block trades with the CME

  #3 (permalink)

Munich, Germany
 
Trading Experience: None
Platform: Sierra Chart
Broker/Data: Interactive Brokers
Favorite Futures: liquid products
 
Schnook's Avatar
 
Posts: 322 since Jul 2016
Thanks: 639 given, 1,138 received


These are privately negotiated transactions between large institutional accounts and their brokers. Sometimes these trades have multiple legs, like simultaneously selling ZF to buy a duration-neutral equivalent of ZB. Executing trades like that can get a bit sloppy or expensive if you have several thousand lots to do per side and need to maintain hedge ratios, so that's when you just pick up the phone and call your broker to get it done quickly and efficiently at one price.

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