On June 17, the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange and Kansas City Board of Trade issued an advisory notice that provides updated guidance on compliance with the exchanges’ rules prohibiting wash trades, as well as information regarding the introduction of self-match prevention functionality on CME Globex. Beginning in June, the exchanges will introduce an optional self-match prevention functionality that, when employed, will automatically block the matching of buy and sell orders that are submitted to CME Globex with the same executing firm ID and the same self-match prevention ID. When the self-matching function is enabled, the trading engine will prevent opposing orders that have been entered with the same self-match prevention ID from matching by cancelling the resting order(s) and processing the incoming order.

Additional information on the self-matching prevention functionality and registration process for obtaining self-match prevention IDs can be found here.

The Market Regulation Advisory Notice is available here.