If a rule violation has been identified by the Investigations, Market Surveillance or Data Investigations teams, the Enforcement Team works to resolve these violations through CME Group’s disciplinary process. This team will often take initial steps to resolve such matters through a settlement. However, if a settlement cannot be reached, the Enforcement team will present its case to the Chief Regulatory Officer for the issuance of charges and will prosecute the charges issued against the alleged violator before the Business Conduct Committee (BCC).
Once a case is referred to Enforcement, it is assigned to an individual Enforcement Counsel. The referral is made in the form of a written investigation report detailing the alleged rule violations, evidence supporting the allegations, statements of the subject and potential witnesses, if any, and recommended charges.
Typically, the attorney assigned to the case will contact the respondent or counsel within 30 days of the assignment to alert the respondent that the case has moved into the prosecution phase.
Enforcement Counsel will also send a Notice of Enforcement to each respondent or the respondent’s counsel. The Notice of Enforcement is formal notification to the respondent that a case has been referred to Enforcement for prosecution. The correspondence briefly outlines the alleged facts, the applicable rule or rules at issue, and directs the respondent to the Chapter 4 Rules regarding procedure.