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Ontario's middle east | It still clears through Cme. Both parties call it in and give the details of the transaction. They have to have agreed on a price ahead of time and then the positions are exchanged. That price is usually done around the market price and doesn't really matter exactly what it is because it just a hedged position for both parties. (If you get less for the hedge the physical is worth more) The only stipulation being is that the particular contract must have traded at the exchanged price at some point during the life of the contract.
Edit: doesn't matter who clears with whom
Edited by Maizeing 2/5/2014 08:20
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How elevators trade grain
