By Hal Weitzman
Independent futures traders at one of the CME Group's most high-profile
trading pits have walked off the job in a highly unusual protest
against"block trades", large, privately negotiated...
Join the CME Co-Location Services Team for an afternoon of technology
discussions, hardware demos and interactive games from Microsoft, all while
overlooking Chicago from the 99th Floor Skydeck of the...
By Howard Packowitz
CHICAGO -(Dow Jones)- Independent traders staged a walkout Friday of CME
Group Inc. (CME) options on Eurodollar futures, protesting a large,
privately negotiated trade a day earlier.
By Katherine Heires
The cheetahs, as Bart Chilton, a commissioner with the Commodities Futures
Trading Commission, calls high frequency traders, have come under
ever-greater scrutiny from the CFTC and Securities Exchange...
By Marvin G. Perez
IntercontinentalExchange Inc. (ICE) (ICE) plans to offer futures and
options in U.S. grains and oilseeds, expanding competition with CME Group
(CME) (CME) Inc., the leader in agriculture...
By Associated Press
Most states are doing a poor job tracking whether their tax breaks for
businesses are actually spurring job growth, including some that have
poured hundreds of millions of...
UPDATE 1-CME STANDS GROUND AFTER EURODOLLAR OPTIONS PROTEST
By Tom Polansek
* CME executives meet with Eurodollar options traders
* Independent traders boycotted open outcry pit on Friday
* No changes made to rules on "block trades"
CHICAGO, April 16 (Reuters) - CME Group is standing its ground on large, privately negotiated trades in the active Eurodollar options market after meeting on Monday with traders who protested against its rules, traders said.
CME executives, including Phupinder Gill, the company's next CEO, met with floor traders who boycotted the options on Eurodollar futures pit on Friday morning, depressing volume, said David Stein, a trader who attended the meeting.
"The exchange is not interested in changing anything," Stein said.
Floor traders claim that the way large, privately negotiated trades are handled puts them at a disadvantage.
CME declined to comment on the meeting.
Independent traders, known as locals, stood outside the pit on Friday to protest a string of recent "block trades," including one on Thursday that triggered the walkout and could have been the largest in history.
Block trades are large, privately negotiated transactions that are struck away from the broader market by phone or otherwise and cleared by the exchange. They must exceed exchange-set size limits and are reported publicly minutes after completion.
The delay in reporting puts floor traders at a disadvantage, according to locals, who said they were not able to participate in the recent block trades. They have said the transactions can be completed more efficiently and equitably in the open outcry pit, and customers can get better pricing there.
CME says block trades provide the "convenience of privately negotiating a trade with a selected eligible counterparty" and the "ability to execute a large transaction at a fair and reasonable single price."
Firms that execute block trades are influential in the market because they could take their business away from CME, potentially to over-the-counter markets, Stein said.
He said local traders did not yet know what their next move will be.
About 470,000 Eurodollar options contracts traded on the CME floor on Friday, down from 661,000 on Thursday and 536,000 on Wednesday, according to CME data.
Notably, on Thursday - when the large block trade that set off the walkout was executed - more Eurodollar options contracts were traded off-exchange via block trade than on the exchange's regular electronic trading system.
Empower farmers and ranchers to connect communities through social media platforms.
An engaged community. A collective voice. A chance for agriculture
to work together on a common issue-led by farmers.