Can the counterparties to a prospective futures transaction discuss the terms of a Block Trade and EFP?
Yes. The counterparties to a prospective futures transaction may directly discuss the terms of Block Trades and EFPs Business between themselves. The counterparties must in turn place their orders with a SFE Full Participant. Counterparties to a prospective futures transaction that are not licensed futures brokers cannot advise, hold client orders or execute futures contracts on behalf of others.
Related Questions
- A CCP is an entity that interposes itself between the counterparties to a transaction, becoming the buyer to every seller and the seller to every buyer. What are the benefits of CCP clearing?
- Do the counterparties to the Block Trade have freedom to determine the price of the transaction?
- What is the actual process of transaction in simple terms?
