A trader agreed to settle Chicago Mercantile Exchange ("CME") charges for placing multiple orders without intention to execute (i.e., "layering" or "spoofing").
A Panel of the Chicago Board of Trade Business Conduct Committee alleged that the trader violated the CME's rule against disruptive trading by layering orders in the soybean futures markets without intent to trade. The trader used software in order to cancel his resting orders within "the same millisecond" of entry of aggressive orders to which other market participants had responded.
Without admitting or denying the charges, the trader agreed to (i) pay $90,000, (ii) disgorge $11,178.88 and (iii) serve a 30-day suspension from trading on any CME trading and clearing platforms.
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