Market Regulation: Meet the Team

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CME Group’s Market Regulation Department works to protect the market integrity of all four of its Exchanges – CME, CBOT, NYMEX, and COMEX by:

  • Applying and enforcing rules that protect all market participants
  • Taking proactive approaches to mitigate risks and prevent damage to the marketplace.
  • Ensuring that each Exchange satisfies its obligations under Federal regulations as designated contract markets
  • And holding violators accountable for their actions.

Meet the Team!

The Market Regulation department is made up several teams.

Market Surveillance

The Market Surveillance team is responsible for detecting and preventing market manipulation by monitoring the price relationships between the futures markets and the underlying physical markets and reviewing positions held by participants to ensure fair and orderly trading of Exchange contracts.

Investigations

The Investigations team is responsible for detecting and investigating potential trade practice violations, such as:

  • wash trades
  • illegal noncompetitive trades
  • block trade infractions
  • money passes
  • other abusive or disruptive trading practices like spoofing

This team also conducts data analysis, collects and reviews documentary evidence, and, where necessary, interviews market participants to gather information relevant to the team’s review of potential trade practice violations.

Data Investigations

The Data Investigations team reviews anomalies in audit trail information submitted to the exchange by trading and clearing firms. This team works to ensure the accuracy of audit trail data, which is key to trade reconstruction, as well as the detection, investigation, and prevention of customer and market abuses.

Enforcement

The Enforcement Team works to resolve violations through CME Group’s disciplinary process. This team will often take initial steps to resolve such matters through a settlement.  If a settlement cannot be reached, the Enforcement team will present its case to the Probable Cause Committee for the issuance of charges and will prosecute the charges issued against the alleged violator before the Business Conduct Committee. The Enforcement Team also manages the Exchange arbitration program.

Systems

The Systems team develops and manages the proprietary systems that support the Market Regulation teams and administers internal training for Market Regulation employees. This team also works closely with the business teams at CME Group to provide regulatory input for new exchange technology, rules, and products.

Regulatory Outreach

The Regulatory Outreach team provides market participants with the information and resources necessary to meet their compliance needs, and serves as a valuable resource in helping to prevent rule violations from the outset. This team has representatives in Chicago, London and Singapore.

 

Each team within the Market Regulation group serves a unique function in guarding the integrity of the financial marketplace, with a strong degree of collaboration among the various teams.  While the Market Regulation Department is ultimately responsible for protecting the integrity of the markets, it also serves as a key resource to help answer questions on trade practice and surveillance rules.

If you have questions send us a message or schedule an online review .

Regards,
Peter Knight Advisor

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