The Business Conduct Committee of the Chicago Mercantile Exchange ("CME BCC") and the Business Conduct Committee of the Chicago Board of Trade ("CBOT BCC") sanctioned several firms and traders for engaging in wash trading, exceeding position limits, and disruptive trading practices.
In separate disciplinary actions, the CME BCC Panel ordered:
- three traders (see here, here, and here) to each pay $20,000 for buying and selling orders in various 2018 expirations of currency and foreign exchange futures indirectly opposite another trader with whom the traders jointly owned two accounts using outright and spread instruments;
- a firm to pay $15,000 and disgorge $314,160 for exceeding the single month position limit in OCT19 Lean Hog futures contracts; and
- a trader to pay $15,000 and disgorge $6,180 for exceeding the spot month position limit in August 2019 Live Cattle futures contracts.
Additionally, the CBOT BCC Panel separately fined:
- a trader $30,000 for entering and canceling orders in the various commodities futures markets without intent to trade;
- a trader $60,000 for misleading market participants through a disruptive trading strategy in U.S. Treasury Bond Futures markets; and
- a firm $30,000 after its automatic trading program caused "significant price movements" in the March 2018 E-Mini Dow futures market.
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.