EFP Transaction Procedures
Block Trade/EFP Prerequisite
A Responsible Trader (see OneChicago Rule 513) of each OneChicago Clearing Member must notify OneChicago of all individuals authorized to report Block Trades and/or Exchange Future for Physical (EFP) transactions on behalf of the clearing firm (“Authorized Reporters”). Authorized Reporters must be registered with OneChicago and receive official clearance to proceed before Block Trades and EFPs are executed and reported on the Exchange.
Click here to download the Authorized Trade Reporter Registration Form
EFP Transactions
Click to download OneChicago’s EFP Transaction Procedures and the EFP trade reporting form (PDF) . If you intend to submit EFP reports electronically, please send an e-mail to OOM@cboe.com to request a form.
OneChicago EFP Transactions:
Guidelines and Reporting Procedures View EFP Transaction Procedures PDF
Last Modified: July 20, 2007
EFP Transaction Prerequisite
Prior to executing Exchange of Futures for Physical (EFP) transactions, firms guaranteeing either side of such a transaction must file a registration list of Authorized Block/EFP Trade Reporters with OneChicago. This list must be signed and submitted by a Responsible Trader (See OneChicago Rule 513). That form must also contain a default value to be used by OneChicago in the event that the registered reporter does not have a unique broker ID. Only OneChicago member firms with a clearing relationship at The Options Clearing Corporation or OneChicago members with a reporting ID that are trading for their proprietary account(s) will be allowed to report an EFP trade. Notwithstanding the foregoing, OneChicago members may directly contact OneChicago and at OneChicago’s discretion may receive a reporting ID in order to report EFP transactions for their own proprietary account(s).
Procedures:
1. The Parties must then deliver to OneChicago a completed EFP Transaction Report in a form and manner approved by the Exchange within a reasonable period of time. Entering into an EFP via OneChicago Block & EFP Trading System (“OCX.BETSTM”) fulfills the requirement to complete an EFP Transaction Report in a form and manner approved by the Exchange. If a transaction is matched by OCX.BETSTM, then the party that traded against the resting bid or offer (the “Aggressor”) is obligated to enter the base price into OCX.BETSTM from which a futures price will be generated by adding the matched differential. If the transaction is an EFP that is only reported on OCX.BETSTM, i.e., a Bi-lateral transaction, then one of the traders must enter the information into OCX.BETSTM and the counter-party trader must confirm the transaction on OCX.BETSTM.
2. In the event of a non-OCX.BETSTM reported trade, the OOM Help Desk will compare the details and of the parties’ reports and — if these reports match — will post the EFP transaction to the OneChicago match engine as a locked-in trade. This will cause the EFP transaction to be disseminated in OneChicago’s market data stream and sent to post-trade processing and clearing. Trades reported after 3:30 p.m. Central Time, however, may not be posted until the following day. Post trade modification of EFP trades will be subject to the same cutoff constraints as all other reported trades for the day. On expiration Fridays, EFPs must be reported to the OOM by 3:00 p.m. Central Time for expiring contracts.
3. The Parties should contact their respective back offices to insure that the trade details are reviewed in post-trade processing for accuracy. Failure to do so may cause the EFP transaction to be reported to clearing with transcription errors.
4. The Parties must compile and retain accurate records of the associated physical asset transfer for audit purposes.
5. Any attempt to misrepresent a non-EFP transaction as an EFP or otherwise misrepresent a true EFP transaction as a standard transaction will be forwarded to appropriate parties for investigation.
6. Requests for breaking or “busting” EFP trades will be considered a serious matter. In determining whether or not to bust an EFP, OOM may consider factors such as the size of the initial report, the variation of the price from the market price at the time of the report, the length of time that has transpired from the trade report and market impact of the initial report. Fees may be levied to discourage erroneous reports and bust requests.
