CFTC releases report on agricultural block trades
October 19, 2018
The Commodity Futures Trading Commission's Market Intelligence Branch on Thursday issued an update to the findings from a July 2018 report that analyzed agricultural block trading in the grains, oilseeds, and livestock markets at the Chicago Mercantile Exchange.
This new report includes data from Jan. 8, 2018, when the CME launched block trading to the full suite of agricultural futures and options products, through September.The CFTC said the following are key findings in the report:
▪ Block trades in the agricultural markets are a very small portion of the overall volume, but are somewhat more significant on specific dates and for certain contract months.
▪ Block trades are primarily occurring in nearby months.
▪ Market makers appear to be offsetting much of the block volume into the central limit order book.
▪ The prices of all block trades reviewed appear to be priced within the CME rule for "fair and reasonable" prices.