Enforcement Process - Offer of Settlement

- Also available in
- 简体中文
- 한국어

Once a case has been referred to the Market Regulation Enforcement team for prosecution, a respondent may seek to settle the case at any time after a Notice of Enforcement has been issued.

The settlement of an enforcement action typically involves negotiations, during which the parties arrive at an appropriate proposed sanction that Market Regulation would support before a Panel of the Business Conduct Committee (BCC). A respondent may not make a settlement offer to the BCC Panel unless Market Regulation supports the offer.

Written Offer of Settlement

After a settlement in principle is reached, the respondent submits the offer in writing for consideration by the BCC Panel. The respondent may submit a written offer of settlement without admitting or denying the rule violations or factual findings upon which the penalty is based; provided the offer includes consent to the entry of the findings by the BCC regarding the conduct, the rule violations at issue, the penalty to be imposed and the Effective Date for the sanctions.

In submitting an offer of settlement, respondents waive their rights to a contested hearing and to appeal the panel’s decision if the offer is accepted. Respondents also waive any claim of bias or prejudgment on the part of the panel. A respondent may withdraw an offer of settlement at any time prior to the start of the settlement hearing before the BCC Panel.

Once a settlement is reached and the written offer of settlement is received, the case will be scheduled for a hearing before a BCC Panel. The BCC Panel will either accept or reject the settlement offer.

Benefits of Settlement

There are advantages for a respondent who negotiates a settlement with Enforcement prior to charges being issued by the Probable Cause Committee (PCC).

A settlement allows a respondent the opportunity to negotiate the language used in the Findings section of a Notice of Disciplinary Action (NDA). Further, settling before the issuance of charges allows the respondent and Enforcement to come to terms as to which alleged rule violation(s) will be cited in the settlement.

If charges are approved by the PCC, Enforcement is generally confined to the charges contained in the Charging Memorandum and the language used to describe each charge. It is difficult to drop charges once the PCC has determined that the evidence supports inclusion of those charges in an enforcement action.

Test your knowledge

Send Us Feedback

Who We Are

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.

Contact Us

View All

CME Group / Chicago HQ

Phone: +1 312 930 1000

Toll Free (US Only): +1 866 716 7274

Margin Services

Overview

Wash Trades

EFRP

Block Trades

Disruptive Practices Prohibited

CME Globex Tag 50 ID Requirements

Pre-Execution Communications

Rule 524 - TAS, TAM, BTIC and TACO