Markets Home

Active trader

Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio.

Find a broker

Search our directory for a broker that fits your needs.

CREATE A CMEGROUP.COM ACCOUNT:

MORE FEATURES, MORE INSIGHTS

Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market.
Market Data Home

Real-time market data

Stream live futures and options market data directly from CME Group.

E-quotes application

Access real-time data, charts, analytics and news from anywhere at anytime.

CME DATAMINE:

THE SOURCE FOR HISTORICAL DATA

Explore historical market data straight from the source to help refine your trading strategies.
Services Home

Uncleared margin rules

Understand how CME Group can help you navigate new initial margin regulatory and reporting requirements.

Calculate margin 

Evaluate your cleared margin requirements using our interactive margin calculator.
Education Home

Now live: ESG solutions

Manage the risk associated with renewable energies, environmental change and sustainable investments.

Create a CMEGroup.com Account: More features, more insights

Get quick access to premium educational content, including expert-led webinars, a real-time trading simulator, and more.
      Course Overview

      Overview

      • CME Group Rules and Regulation Overview
      • Market Regulation: Meet the Team

      Wash Trades

      • Wash Trades - Definition of a Wash Trade
      • Wash Trades – Responsibility and Implications
      • Wash Trades – Automated Trading Systems
      • Wash Trades - Freshening

      EFRP

      • EFRP - What is an EFRP?
      • EFRP - Parties to an EFRP
      • EFRP - Pricing and the Related Position for EFRPs
      • EFRP - Reporting and Recordkeeping
      • EFRP - Prohibited Transitory EFRPs

      Block Trades

      • Block Trades - What is a Block Trade?
      • Block Trades – Participant Eligibility
      • Block Trades – Eligible Products, Times and Prices
      • Block Trades – Reporting and Recordkeeping
      • Block Trades – Pre-Hedging
      • Block Trades – TAS, TAM and BTIC

      Disruptive Practices Prohibited

      • Disruptive Practices Prohibited - General Information
      • Disruptive Practices Prohibited - Factors Market Regulation Considers
      • Disruptive Practices Prohibited - Spoofing
      • Disruptive Practices Prohibited - Flipping
      • Disruptive Practices Prohibited - Additional Examples
      • Disruptive Practices Prohibited - Frequently Asked Questions

      CME Globex Operator ID Requirements

      • CME Globex Operator ID Requirements – General Rule
      • CME Globex Operator ID Requirements - Registration and Requirements
      • CME Globex Operator ID Requirements - Individual and Team Operators

      Pre-Execution Communications

      • Pre-Execution Communications - Overview & Crossing Protocols

      Rule 524 - TAS, TAM, BTIC and TACO

      • Rule 524 - TAS, TAM, BTIC, and TACO

      Enforcement Process

      • Enforcement Process - Introduction and Initial Referral
      • Enforcement Process - Offer of Settlement
      • Enforcement Process - Settlement Hearing
      • Enforcement Process - Default Hearings
      • Enforcement Process - Contested Hearings
      • Enforcement Process - Appeals
      Market Regulation
      You completed this course.Get Completion Certificate

      Enforcement Process – Default Hearings

        • Also available in

        • 简体中文
        • 한국어

      Video not supported!

      If the parties are unable to settle a pending disciplinary matter, the case proceeds to the Chief Regulatory Officer for issuance of charges. If charges are issued, Enforcement Counsel will send the respondent notice of the charges with a Charging Memorandum.  The respondent has 21 calendar days after notice to submit a written answer to the charges. The answer must state that the respondent admits, denies, or lacks sufficient knowledge to admit or deny a charge.

      Motion to Deem Charges Admitted by Default

      If the respondent fails to answer the charges, or answers but fails to deny the charges, or answers but not within 21 days, Market Regulation will file a written motion with the BCC Hearing Panel Chair asking for an order finding the respondent to be deemed to have admitted the charges issued by default. The respondent may file a response to the motion by contacting counsel to the Panel.

      After the motion to deem the charges admitted has been filed by Market Regulation, and a response, if any, is filed by the respondent, the Hearing Panel Chair will decide the motion on the written filings of the parties or by oral argument.

      If the charges are deemed admitted, the respondent waives the right to a hearing on the merits of the charges. Once the charges are deemed admitted, the BCC Panel will convene to find the respondent guilty of committing the charged rule violations and issue a penalty.

      Prior to the hearing on the penalty, Enforcement Counsel will notify the respondent of the hearing, the right to appear before the panel for the hearing, and the names of the panel members. Enforcement will also prepare a packet that is provided to the BCC Panel and respondent containing a memorandum outlining Market Regulation’s requested sanction or penalty and a draft notice of disciplinary action.

      BCC Hearing on Default Cases

      Once the BCC Panel convenes, the hearing is bi-furcated. In the first segment, the BCC Panel finds the respondent guilty of committing the charged violations, which the BCC is required to do under Rule 407.C. In the second segment, the BCC determines what sanctions should be issued and, in doing so, considers Enforcement’s recommended sanctions.

      After the BCC Panel issues its penalty, a written decision will be prepared and sent to the respondent. The decision of the Panel can be appealed if the total monetary sanction is greater than $25,000 and/or an access denial or suspension of any membership privileges for greater than ten-business-days is issued.


      Test your knowledge

      Related Courses
      /content/cmegroup/en/education/courses/market-regulation/enforcement-process/enforcement-process-default-hearings
      • {{ course.name }}
      Previous Lesson
      Next Lesson
      Course Overview
      Get Completion Certificate
      Previous Lesson Next Lesson
      • YouTube
      • Twitter
      • Facebook
      • LinkedIn
      • Instagram
      • Rss

      CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). 
      Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

      © 2021 CME Group Inc. All rights reserved.

      Disclaimer  |  Privacy Policy  |  Cookie Policy  |  Terms of Use  |  Data Terms of Use  |  Modern Slavery Act Transparency Statement  |  Report a Security Concern