EX PIT TRANSACTION

ex pit transaction: translation

The term "Ex Pit" refers to any transaction done non-competitively. The only permissible ex-pit transactions are EFPs EBFs defined block trades and transfers. Block trades must be executed in accordance with Rule 526. EFP and EBF transactions must be executed in accordance with either Rule 538 or Rule 719. Transfers may only be made in accordance with Rule 853. Chicago Mercantile Exchange Glossary

ex pit transactions

Trades made outside the trading pit. There are two types of valid ex pit transactions:

1. An exchange of cash for futures ( exchange for physicals) involving the simultaneous purchase of cash commodities in exchange for a futures contract, at a price difference mutually agreed upon.

2. A transfer trade involving the transfer of a customer's account between brokerage firms.Ex-pit transactions are not guaranteed by the CME Clearing until the initial settlement is met. Chicago Mercantile Exchange Glossary