CME Group issued a Special Executive Report reminding market participants that, under one of its rules, they are prohibited to engage in test trades in a non-test product without the intent to execute a bona fide transaction. Glory Sky Precious Metals Limited recently agreed to settle charges brought by the Commodity Exchange, Inc. that, from May 1, 2015, through May 1, 2016, it entered and cancelled over 7,100 orders in the gold futures markets allegedly to test the latency within those markets. The orders were not intended to be executed, claimed a COMEX business conduct committee. Glory Sky consented to pay a fine of US $55,000 to resolve this matter. (Click here for further details on this action, as well as an analysis, in the article “CME Group Exchanges Charge One Trader With Impermissibly Entering Orders To Test Gold Market Latency and Another With Failure to Timely Complete Delivery” in the June 4, 2017 edition of Bridging the Week.) Separately, NASDAQ Futures, Inc. proposed updated audit trail guidance. Among other things, futures participants and authorized customers would be obligated to maintain information for all orders and quotes entered into the exchange’s trading system, including order and quote modifications and cancellations. The new guidance will be effective July 3.