How to submit a Block Trade without pre-trade allocation This guide is split into two sections, the first deals with what a Block Trade is and lists the main exchange rules that apply to them, and the second is a step by step guide to entering them using the EasyTrade GUI. All Exchange rules referenced below are valid as of the 20th July 2009. Please be aware they are subject to change. Block Trade Explanation Block Trades are pre-negotiated high volume trades that belong in the category of OTC/Ex-pit/Wholesale Trades. Both the Buy and Sell sides of the order are submitted at the same time, and trade against each other without entering the Central Order Book on the exchange. The individual sides are matched by a human within a few minutes, once the order has been entered successfully. Contract Rules: • The Contracts on which they are supported can be found on pages 1-7 in the document “LIFFE Trading Procedures Annexe 1 - LIFFE Trading Procedures” (http://www.euronext.com/fic/000/045/026/450267.pdf) • Block trades can be traded against any Exchange recognised strategy including inter-contract spreads. Price Rules: • The only price limits that apply when submitting Block Trades are the standard price limits that apply to the Central Order Book. • These do not require a contract to have traded before they can be submitted against it. Volume Rules: • The Minimum Volume thresholds can be found in the document “LIFFE Trading Procedures - Annexe 3 - Trading Arrangements” (http://www.euronext.com/fic/000/045/026/450266.pdf) Time Rules: • These are to be submitted within 5 minutes of organisation, 15 minutes for a trade that is dependant on the execution of another instrument or where there are exceptional market conditions. • On the JO PXA, FF BXF, and FO BXO Contracts, Block Trades can be accepted until 17.15. Block Trades against the remaining contracts may be traded up until the close. • These can be traded on the last Trading Day of a delivery/expiry month, and the latest time that on that day is the time at which trading in the month ceases in the Central Order Book. RFQ Rules: • No RFQ is required when submitting Block Trades. Mandatory Fields: • Price/Volume. • Also Block Trades placed on exchanges that clear through Clearing 21 require the Account Code field to be populated. Please see our NYSE Euronext Order Fields Summary documentation for additional Exchange specific details. Approval Rules: • These orders are approved by Market Services and so will remain as an Active Order until a human has accepted them. The Exchange rules referenced above are subject to change so please ensure you are aware of the latest amendments. Step by Step Guide to submitting a Block Trade without pre-trade allocation using the EasyTrade GUI 1. Bring up an OTC/Ex-pit/Wholesale Trade Ticket against the instrument you wish you trade. 2. Enter the Volume. 3. Enter the Price. 4. Select the order type “Block Trade”. 5. Enter an Account code of H or select a Client whose default Account Code is = H, for both the Buy and Sell Side of the order. 6. If the order is a strategy, populate the volume and price of each leg using the “Strategy Legs” Tab (See screenshot below) 7. Click the “Enter” button to submit the order. 8. Orders corresponding to both sides of the order will appear in the Active Orders Window while a human at the exchange analyses them to confirm they conform to all exchange rules. 9. Once the Trade has been validated, fills for both sides will appear in your Filled Orders Window: 10. If an error occurs when submitting the order it will look like this, asking you to refer to the Message Log (Note the red error message at the bottom): 11. On the system tab of the Message Log Window will be an error message indicating what the problem is (in this case the price is invalid): 12. If you have any queries about why your order is being rejected, please call LIFFE Market Services (LMS) on 0207 379 2001, and call us on 0207 650 4401 should there be any further confusion.
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