October 18, 2018

CFTC Staff Issues Updated Report Assessing Agricultural Block Trades

Washington, DC — The Commodity Futures Trading Commission’s (CFTC) Market Intelligence Branch (MIB) today issued a report entitled Updated Report: Agricultural Block Trade Analysis  (October 2018), that updates findings from a July 2018 report that analyzed agricultural block trading in the grains, oilseeds, and livestock markets at the CME. 

This new report includes data for the time period of January 8, 2018, when CME launched block trading to the full suite of agricultural futures and options products, through September 2018. Access the original report at Agricultural Block Trades (July 2018).

• 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.

MIB staff will continue to engage the industry as block trading develops.  This report is part of a series of MIB reports.  MIB is a unit of the CFTC’s Division of Market Oversight.  Part of MIB’s role is to analyze and communicate current and emerging market issues to CFTC leadership and the public and assist the CFTC in making informed policy.

[New report at the link above and under Related Links]