Overview
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
Rule 524 - TAS, TAM, BTIC and TACO
Enforcement Process
CME Group’s Market Regulation Department works to protect the market integrity of all four of its Exchanges – CME, CBOT, NYMEX, and COMEX by:
- Applying and enforcing rules that protect all market participants
- Taking proactive approaches to mitigate risks and prevent damage to the marketplace.
- Ensuring that each Exchange satisfies its obligations under Federal regulations as designated contract markets
- And holding violators accountable for their actions.
Meet the Team!
The Market Regulation department is made up several teams.
Market Surveillance
The Market Surveillance team is responsible for detecting and preventing market manipulation by monitoring the price relationships between the futures markets and the underlying physical markets and reviewing positions held by participants to ensure fair and orderly trading of Exchange contracts.
Investigations
The Investigations team is responsible for detecting and investigating potential trade practice violations, such as:
- wash trades
- illegal noncompetitive trades
- block trade infractions
- money passes
- other abusive or disruptive trading practices like spoofing
This team also conducts data analysis, collects and reviews documentary evidence, and, where necessary, interviews market participants to gather information relevant to the team’s review of potential trade practice violations.
Data Investigations
The Data Investigations team reviews anomalies in audit trail information submitted to the exchange by trading and clearing firms. This team works to ensure the accuracy of audit trail data, which is key to trade reconstruction, as well as the detection, investigation, and prevention of customer and market abuses.
Enforcement
The Enforcement Team works to resolve violations through CME Group’s disciplinary process. This team will often take initial steps to resolve such matters through a settlement. 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. The Enforcement Team also manages the Exchange arbitration program.
Systems
The Systems team develops and manages the proprietary systems that support the Market Regulation teams and administers internal training for Market Regulation employees. This team also works closely with the business teams at CME Group to provide regulatory input for new exchange technology, rules, and products.
Regulatory Outreach
The Regulatory Outreach team provides market participants with the information and resources necessary to meet their compliance needs, and serves as a valuable resource in helping to prevent rule violations from the outset. This team has representatives in Chicago and Hong Kong.
Each team within the Market Regulation group serves a unique function in guarding the integrity of the financial marketplace, with a strong degree of collaboration among the various teams. While the Market Regulation Department is ultimately responsible for protecting the integrity of the markets, it also serves as a key resource to help answer questions on trade practice and surveillance rules. For more information, please visit CME Group’s Market Regulation webpage.
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