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Block trades with the CME

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SMCJB View Post
This does happen. What confuses me is why a market maker would ever want to do that, but they do!

I can think of only 2 reasons (Backed by a whole month of futures experience):
1. They have another buyer that will take the other side of the trade and the market maker is picking up the spread on this order? Basically a glorified middleman.
2. They know something the trader doesn't and is looking to capitalise on their poor decision?

SMCJB View Post
When looking at block trades you need to be careful as you may not know what you are looking at. For example you might see 1000 lots of NGH7 block cleared. What does this mean? Did a large trader just buy or sell 1000 lots? Or is there a 1000 lot trade on ICE as well and this is just a NYMEX-ICE margin reducing trade? Or is that 100 lot/month Cal 2019 trade, cleared two minutes later, the other side of a H7/Cal19 spread?

You will see the order being executed on the exchange wouldn't you? This raises another question, do they show the block trade on the website prior to executing it on the exchange? I suppose either way there still is no edge because algos will front run it quicker than any trader although if its big enough it will have some impact on direction that can be capitalised on (Im rambling. Sorry). Also, does it matter if it is a spread trade? Its size should still be seen by other traders and algos and cause some disturbance and possible trend move regardless of the reason behind it?

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