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

FX Insights from Macro Hive

Receive exclusive insights on key FX macro themes, volatility trends, and market events through our bi-weekly report.

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 - Offer of Settlement

        • Also available in

        • 简体中文
        • 한국어

      Video not supported!

      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 Chief Regulatory Officer.

      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 Chief Regulatory Officer, 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 Chief Regulatory Officer has determined that the evidence supports inclusion of those charges in an enforcement action.


      Test your knowledge

      Related Courses
      /content/cmegroup/en/education/courses/market-regulation/enforcement-process/enforcement-process-offer-of-settlement
      • {{ 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