(Sigh) - no, your clever maneuver to make a wash not look like a wash doesn't work. It was not a pair of EFRPs.
In the continuing exploration of how one can try to arrange their book through trades that will disguise a wash trade, Nomura was just fined $30K for reporting two EFRP trades that just so happened to work together to act as a wash trade between two accounts with common beneficial owner. The exchange noted the trades and asked for documentation of the physical delivery contracts behind the EFRP.
Yes, a exchange can ask through a "special call" for production of the specific physical delivery contracts behind an EFRP. Failure to have an executed physical contract prior to the futures transactions converts the declared EFRP into an illegal off-market futures transaction. There were a significant number of special calls in the energy and agricultural markets in the late 2000's regarding EFRPs - the largest fine I recall was a $5MM fine of Morgan Stanley for a pattern of EFRP abuse.
In this case, Nomura appears to have used two EFRPs to consummate the two sides of a wash trade without having underlying supporting documentation.
This fine appears to be above the norm for a single EFRP violation. My opinion is that the use of non-valid EFRPs to attempt to disguise a wash trade led to a heavier penalty. I would note that the CME disciplinary notice here did not include specific language that indicated my opinion was the motivating factor for the level of the penalty.
This, once again, proves that the exchanges have the ability to peruse all executions to determine if beneficial accounts are on both sides of the transaction and then to drill deeper into why this would occur. The level of information about account attribution significantly increased with the revised Form 40 and this type of analysis is much easier for the exchanges to perform.