Which of the following regarding TES trades is correct?

The correct choice indicates that TES (Trade Execution System) trades can only involve specific participants. This is accurate as TES is designed to facilitate trading between certain defined parties, typically participants who have pre-agreed criteria for engaging in these trades. The exclusivity in participant eligibility is a key aspect of TES trades, ensuring that transactions occur within a controlled and familiar environment where the involved parties have a mutual understanding or established agreement.

The options describing the confirmatory time frame or the negotiation of terms do not apply to TES trades, as there are specific rules governing transaction finalization and term agreement that distinguish them from other trading mechanisms. Furthermore, while the TES trades facilitate a more private and knowable trading environment, they also operate under rules that do not necessarily define a market price, which is reflective of broader trading systems where prices are publicly displayed.