United States:
Five CME Traders Settle "Spoofing" Charges
14 December 2018
Cadwalader, Wickersham & Taft LLP
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Five traders agreed to settle Chicago Mercantile Exchange
"spoofing" charges.
In unrelated schemes, the traders had engaged in (i) placing and
canceling multiple orders in order to cause execution on other
orders or (ii) layering.
Commentary
The fact that the CME settled five separate actions on
spoofing is a good sign of the regulatory and enforcement
attention that the exchange is giving to the issue. This means that
firms need to step up their internal procedures to monitor the
activities of their traders for conduct that the regulators may
disfavor.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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