Block Trades

Members should make sure they are familiar with the ErisX Rulebooks which detail the rules that Members must abide by when participating in or entering Block Trades.


Description

A Block Trade is the sale or purchase of a specified quantity of an asset at a defined price that is negotiated directly between two parties. ErisX allows its Members to submit Block Trades to the exchange in order to record, process and settle the trade via ErisX’s Exchange and Clearinghouse. This improves and simplifies Members’ workflows, enables many-to-many trading and mitigates settlement risk, while minimizing operational and paperwork burdens.


Block Trades executed via ErisX are subject to a series of rules that differ from the trades executed on ErisX’s Central Limit Order Book. Before using ErisX Block Trade capabilities, Members should make sure they are familiar with the ErisX Exchange Rulebook Rule 601 and Rule 1206, which detail the rules that Members must abide by when participating in or entering Block Trades.

Block Trade Permissions

By default, Members are not allowed to enter into Block Trades. Members who are interested in being enabled to submit Block Trades, must contact the ErisX Client Services team to discuss adding Block Trade permissions to your Member account.


The permissions for entering or participating in Block trades on ErisX are divided across Members and Users profiles.


  • Before any account under a Clearing Member can enter or participate in a Block Trade, the Clearing Member must have Block Trade permissions enabled (for Spot and/or Futures).

  • Before any User can enter a Block Trade, the User must have the Block Trade permission enabled. 


Note: To participate in Futures Block Trades each participant must be an Eligible Contract Participant.

Block Trade Submission

ErisX offers two options to submit Block Trades:

  1. Via REST API

  2. Via the ErisX Trading UI


Members may choose the method that better suits their needs. The documentation describing the API methods to submit Block Trades can be found in the ErisX REST API documentation.


Note: only one of the participants involved in the Block Trade submits the Block Trade for both parties. 


In order to submit a Block Trade using the ErisX Trading UI, Members should follow the steps below. Note that Block Trade Submission is available in both Desktop and mobile versions of the ErisX Trading UI.


  1. Login to the ErisX Member Portal (EMP) and navigate to the ErisX Trading UI via the “Trade” button located at the top right of the page.

  2. Select the Product for which you would like to enter a Block Trade by clicking on the Product Dropdown located at the top of the screen. 

    1. If you select a Futures product, next select the specific contract for the product for which you would like to enter a Block Trade.



  1. Click the option labeled “Block Entry” on the Order Entry widget.



  1. A form will appear with all the fields required to enter a Block Trade. Complete all the required fields:

    1. Quantity: amount that will be sold/purchased.

    2. Price: negotiated price at which the trade will be recorded.

    3. Neg Time: Time at which the Block Trade was negotiated. 

      1. When clicking on this box, it will auto-populate with the current time. 

      2. The negotiated time can’t be older than 15 minutes from the time of entry.

    4. Buyer and Seller Information:

      1. Account: ErisX Clearing Account Number.

      2. Client Ord Id: This ID can be used by the Members to identify the Block Trade. When clicking on it, it auto-populates but can be changed based on the user's preferences.

      3. Sender Sub Id: An ID that identifies the trader that negotiated the Block Trade on behalf of the corresponding account.

      4. Sender Loc: Location of the trader that negotiated the Block Trade. 

        1. For US locations, the required format is [State],US, where the state is the 2 letter state code. 

          1. Example: TX,US

        2. For non-US locations, enter only the 2 letter country code.

      5. Cust Acct Ref: Optional field that can be used by FCMs to identify the end-user under whose account the block trade will be booked.

  2. Once the form is completely filled out, click on the “Review & Submit” button.

  3. Review your Block Trade details one more time and once you are sure that everything is correct, click on Submit.

  4. You will receive a notification that the Block Trade Request has been submitted.

  5. You can see Block Trade Request status in the “Block Trade Requests” table available at the bottom of the UI. 

    1. If a Block Trade has not been fully cleared, a refresh icon will appear next to it in the table

    2. Click on the icon to get the latest status of the Block Trade request.

  6. If a Block Trade request is rejected for any reason an alert is displayed along with the rejection reason. 

OTC Streams

ErisX Members can source liquidity to execute large orders via the ErisX streaming OTC service. This new service is fully supported via the ErisX Trading UI as well as the WebSocket API. Members can login to the ErisX Trading UI and request a quote for a specific asset and quantity. Immediately after, quotes will start streaming for the given asset and quantity. Clients can interact with the quotes and execute them. Once the quote is executed, the trade is cleared and settled by the ErisX Clearinghouse instantly on the Member’s ErisX account. 


This simplified workflow implemented by ErisX eliminates OTC counterparty risk for ErisX Members and the burden of AML/KYC processes between Members and liquidity providers typical of bilateral agreements. Moreover, ErisX’s Clearinghouse is responsible for clearing and settling the trade, which is done instantly, thus eliminating complex settlement processes and unnecessary blockchain, bank interactions and their associated costs.


Eliminate counterparty risk and settle instantly

The ErisX Clearinghouse eliminates the challenges of counterparty risk and complex settlement workflows associated with bilateral OTC trading. ErisX’s simplified workflow enables users to execute OTC quotes which are cleared and settled instantly in the ErisX account.


Eliminate independent counterparty AML/KYC reviews 

All ErisX Members are subject to AML and KYC reviews by the Clearinghouse. Clearing Members can trade with all other clearing Members without the need to do independent AML/KYC reviews for each counterparty. 


Accessible via Trading UI and API

ErisX OTC quote streams and executions are fully supported in the ErisX Trading UI, so you don’t need any development work to start using it. It is also fully supported in the ErisX Websocket API, which enables you to customize your implementation.