Block Trades

The Exchange shall designate the Contracts in which Block Trades shall be permitted and determine the minimum block size for such transactions. Block sizes will be posted on the Website.

The following rules shall govern Block Trades:

1. A Block Trade must be for a quantity that is at or more than the applicable minimum threshold. Orders may not be aggregated to achieve the minimum transaction size unless expressly permitted under Applicable Law.

2. Each Participant entering into a Block Trade must be an Eligible Contract Participant, as defined by the CEA, and approved for Block Trading by the Exchange. Each Participant must have a separate and independent bona fide business purpose for entering a Block Trade.

3. The price at which a Block Trade is executed must be fair and reasonable in light of:

   1. the size of the Block Trade,
   2. the prices and sizes of other transactions in the same contract at the relevant time,
   3. the prices and sizes of transactions in other relevant markets, including the underlying cash market and related futures markets, at the relevant time, and
   4. the circumstances of the markets or the Participants to the Block Trade.

4. Block Trades shall not affect Orders on the Exchange's regular market.

5. Parties to a Block Trade must ensure that each Block Trade is submitted without delay upon execution of the trade, in no event later than fifteen (15) minutes after execution via web platform. The submission must include the Contract(s), contract month(s), price, quantity of the Transaction, time of execution, the respective Clearing Member, as well as any other information that the Exchange may require. The Exchange shall promptly publish price and volume information separately from the reports of Exchange transactions.

6. Participants involved in the execution of Block Trades must maintain electronic records of all such Block Trades, including an electronic timestamp reflecting the date and time each such Order was received as well as an electronic timestamp reflecting the date and time such Order occurred or was cancelled.

Trade Entry. Block Trades must be submitted via web platform, where both approved Participants must confirm the Block Trades, specifying the identical Expiry(s) to be traded, the quantity and price, and the buyer and seller.

Modification and Cancelation. Block Trades submitted during the Exchange's Trading Hours, and up to fifteen (15) minutes thereafter, are subject to immediate confirmation by the Exchange and may not be modified or cancelled. If erroneous information has been submitted as part of a Block Trade, the Exchange should be notified as soon as the error is detected. If appropriate, the Exchange will facilitate the modification of the trade on a discretionary basis; any trade modification the Exchange agrees to submit to the Clearinghouse will be done during normal Trading Hours.

Risk Limit Validation and Clearing. All Block Trades will be subject to the Exchange's risk controls. Upon verification, the Block Trade will be submitted to the Clearinghouse for novation. The Exchange will make available, via a web interface, confirmation that the Block Trade has been accepted.