Regulatory Alerts2012-06-27 | 2012-15481Rules Prohibiting the Aggregation of Orders To Satisfy Minimum Block Sizes or Cap Size Requirements, and Establishing Eligibility Requirements for Parties to Block Trades
The Commodity Futures Trading Commission proposes rules to prohibit the aggregation of orders across different trading accounts to satisfy minimum block size or cap size requirements for swap contracts. The proposal establishes that parties to a block trade must individually qualify as eligible contract participants, with limited exceptions for specific advisors and foreign persons managing over $25 million in assets. Additionally, the rule requires persons transacting block trades on behalf of customers to obtain prior written instruction or consent from those customers.
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