Market Regulation

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CME Group Rules and Regulation Overview

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CME Group Rules and Regulation Overview

Founded in 1974, the U.S. Commodity Futures Trading Commission (CFTC) is the primary regulator of the U.S. futures and options on futures markets.

CME, CBOT, NYMEX and COMEX are separate CFTC-registered and regulated Designated Contract Markets (DCMs) with self-regulatory responsibilities. To provide a common regulatory framework for market users, the rulebooks have been substantially harmonized with a few significant differences, such as membership requirements and product specifications.

Rulebooks

Each rulebook includes access requirements, terms and conditions of any contracts to be traded, and rules prohibiting abusive trade practices. The rulebooks can be found in the Market Regulation section of cmegroup.com

Traders participating on any CME Group Exchange must be aware of and abide by all Exchange rules. Market Regulation is charged with, but not limited to, regulating Chapters four and five, along with certain parts of Chapters seven and eight.

Those chapters are:

Chapter Four: Enforcement of Rules
Chapter Five: Trading Practices
Chapter Seven: Delivery Facilities and Procedures
Chapter Eight: Clearing House and Performance Bonds

The remainder of the chapters cover the terms and conditions of each product in the specific Designated Contract Market as well as membership and committees.

Additional lessons detailing specifics of trading practices covering block trades, wash trades, prohibited and disruptive practices, can be found in other lessons in this course.

Market Regulation Advisory Notices

In addition to rules, CME Group Market Regulation periodically sends Market Regulation Advisory Notices (MRAN) to inform the marketplace of:

Rule amendments
New Rules
Regulatory guidance
Reminders of current rules

MRANs are used to advise the marketplace on how to stay in compliance with the rules and are distributed by the Market Regulation department. MRANs have the same force and effect as a rule. Market participants can and should subscribe to receive these.

Special Executive Reports

Market Regulation Special Executive Reports (SERs) provide the marketplace with information regarding:

Upcoming rule changes
Reminders

SERs can be sent by multiple departments throughout CME Group. However, Market Regulation will send out SERs specifically to inform the marketplace of rule changes and other announcements.

Market Surveillance Notices

Additionally, market participants can find information regarding position limits and large trader reporting requirements by subscribing to receive Market Surveillance notices.

Market participants can and should subscribe to receive MRANs, SERs and Market Surveillance Notices. This can be done through the Market Regulation page of cmegroup.com.

Enforcement of Rules

As a Designated Contract Market, CME, CBOT, NYMEX and COMEX, must employ an enforcement team that works to resolve rule violations through each exchange’s disciplinary process. A thorough description of the enforcement process is available in another lesson in this course.

The mission of the Market Regulation department is to protect and enhance the integrity of CME Group markets by efficiently providing superior quality regulation and regulatory services to all constituents and mitigating regulatory risk through proactive and dynamic regulation.

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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.

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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

Enforcement Process

CME Group Rules and Regulation Overview

Also available in

CME Group Rules and Regulation Overview

Rulebooks

Market Regulation Advisory Notices

Special Executive Reports

Market Surveillance Notices

Enforcement of Rules

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