This came across my desk the other day. It’s a standard release from an exchange to its members. In this case, it happens to be CME ($CME), but it could be any US exchange($NYX, $NDAQ, $ICE). This is part of the function exchanges actively perform. Self Regulatory Organization, or SRO. I have deleted the names and the amount of the fine to protect the identity of the person.
Q. commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange.
T. to engage in dishonorable or uncommercial conduct.
Pursuant to an offer of settlement in which person, a non-member proprietary trader working for a member firm and subject to the jurisdiction of the Chicago Mercantile Exchange (“CME”) pursuant to CME Rule 400, neither admitted nor denied the findings and conclusions herein, on XXX XX, 20XX, a Panel of the CME Business Conduct Committee (the “Panel”) found that from XXX 1, 20XX through XXX 31, 20XX, Person traded index futures, including E-mini NASDAQ 100 Index futures contracts (“Mini -Nasdaq”) over the CME Globex (“Globex”) electronic trading platform. During this period, the Panel found that Person entered into a trading strategy that misled other market participants, including algorithmic trading strategies employed by other firms, and exploited that deception for Person’s benefit.