In a report published on Monday, July 2 the U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight announced that block trading conducted by the CME Group has fallen within the Commission’s rules for “fair and reasonable pricing”. Block trades are generally larger deals that are privately negotiated but cleared via an exchange before appearing as volume like other deals.  

In its report, CFTC also noted that “block trades are still occurring mainly in the nearby months,”  and that “block trades are insignificant compared to total volume, but the analysis shows block trades can be a significant percent of the total volume in an individual contract month on specific days.” 

A copy of the report can be found report here.