ARTICLE
24 September 2019

CME Group Issues Fines For Trade Practice Violations

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
The Chicago Mercantile Exchange Group issued fines against an energy company and a fund management company for trade practice violations.
United States Finance and Banking

The Chicago Mercantile Exchange Group ("CME") issued fines against an energy company and a fund management company for trade practice violations.

The CME ordered:

  • an energy company to pay a $40,000 fine for (i) reporting inaccurate execution times on multiple block trades in crude oil futures and (ii) failing to sufficiently supervise employees; and
  • a fund management company to disgorge $3,778.72 for the illicit profits made by a former trader prearranging the execution of round-turn transactions to earn trade credits from NYMEX's Steel futures market-maker incentive program.

Primary Sources

  1. CME Notice of Disciplinary Action: Alpha Academic Limited
  2. CME Notice of Disciplinary Action: Syntex Energy, LLC

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