ICE Futures Europe updated its Block Trades and Asset Allocations Guidance to comport with requirements of MiFID II. The guidance—which took effect on January 3—contains separate appendices for energy contracts, soft commodity contracts, fixed income contracts and equity contracts containing the respective block trade thresholds. Importantly on IFEU, members are not permitted to front-run or pre-position block trades. Specifically, “[m]embers are not permitted to enter into a transaction for their own benefit, which is transacted on the basis of and ahead of an order … which it, or an associate, is to carry out with or for another … which takes advantage of the anticipated impact of the order on the market.” On ICE Futures U.S., pre- or anticipatory hedging of futures and related options block trades by principal counterparties prior to a transaction’s execution is authorized under limited circumstance. (Click here for background in the article “Pre-Hedging by Principals Authorized in Block Trade Clarification Implemented by IFUS and Adopted by CME Group” in the October 30, 2016 edition of Bridging the Week.)