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Block trading at Cantor.

The Cantor Exchange, a fully electronic joint venture between the New York Board of Trade and eSpeed, received approval from the CFTC to offer block trading in U.S. Treasury futures.

The offering will be available for 30-year Treasury bonds and 10-year Treasury notes as a one-year pilot

program. Block trading allows institutional clients to negotiate transactions privately rather than showing them to the entire market through the trading floor and possibly affecting the price at which they will be filled.

Heeding concerns that block trading may impact the markets' price discovery process and hurt small traders, the CFTC instituted several conditions to its approval: There will be a minimum transaction size of 100 contracts, representing a face value of $10 million; a transaction must be reported to the exchange within 10 minutes of execution; after 90 days, reporting must take place within five minutes of execution and the exchange must publish the information immediately upon receipt.

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