Rule 854 ("Concurrent Long and Short Positions")

Pending all relevant regulatory review periods, effective on Monday, April 7, 2014, CME, CBOT, NYMEX and COMEX will adopt a new provision in each Exchange’s Rule 854 ("Concurrent Long and Short Positions").  The new provision codifies existing practice with respect to violations of the Rule, which are subject to staff summary sanctions in accordance with Rule 512 ("Reporting Infractions") or referral to the Probable Cause Committee for the consideration of the issuance of charges.  This is similar to language that was incorporated into Rule 853 ("Transfers of Trades and Customer Accounts") on March 10, 2014.

The text of the new provision is set forth below, with additions underscored. 

Questions concerning the new provision may be directed to Erin Coffey, Senior Rules and Regulatory Outreach Specialist, Market Regulation, at 312.341.3286.

For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312.930.3434 or news@cmegroup.com.

CME

854.                CONCURRENT LONG AND SHORT POSITIONS

Set forth below are the procedures that must be followed for concurrent long and short positions and hold-open accounts.

[Sections A. – D. are unchanged.]

E.    Violations of this Rule may result in summary sanctions in accordance with the provisions of Rule 512 or the         matter may be referred to the Probable Cause Committee for the consideration of charges.

CBOT

854.                CONCURRENT LONG AND SHORT POSITIONS

Set forth below are the procedures that must be followed for concurrent long and short positions and hold-open accounts.

 [Sections A. – D. are unchanged.]

E.    Violations of this Rule may result in summary sanctions in accordance with the provisions of Rule 512 or the         matter may be referred to the Probable Cause Committee for the consideration of charges.

NYMEX & COMEX

854.                CONCURRENT LONG AND SHORT POSITIONS

Set forth below are the procedures that must be followed for concurrent long and short positions and hold-open accounts.

[Sections A. – D. are unchanged.]

E.    Violations of this Rule may result in summary sanctions in accordance with the provisions of Rule 512 or the         matter may be referred to the Probable Cause Committee for the consideration of charges.