CME Issues Two Disciplinary Actions Against FCMs for Wash Trading

The CME's Business Conduct Committee issued disciplinary actions against a number of individual and institutional traders for various infractions of its rules, including those relating to supervision regarding the conduct of its employees. Two of the actions involved FCMs and are summarized below.

In CBOT 11-8056-BC, the CME imposed a fine of $65,000 against a member firm for violating its wash trade Rule 534. The firm executed numerous transactions in multiple Micro FX futures contract markets and the S&P 500 Select Sector Index futures product suite, wherein orders for the trading groups' accounts self-matched. The Panel found that the wash transactions occurred as a result of the trading groups' failure to employ effective functionality designed to minimize self-matches.

In CBOT 12-9031-BC, the CME imposed a fine of $85,000 against a member firm for violating its wash trade Rule 534. The firm executed thirteen wash trades on Globex totaling 1,360 Soybean and Corn futures contracts with the intent to move positions between the accounts.

See: CBOT 11-8056-BC Tower Research Capital Investments; CBOT 12-9031-BC Jilin Grain Group Import and Export Co.