The CME Group is proposing to amend its rules expressly to prohibit violations of position limits on an intraday basis. CME Group exchanges have routinely applied its prohibition against maintaining positions in violation of position limits (CME Rule 562; click here to access) both on an intraday and end-of-day basis, consistent with how the Commodity Futures Trading Commission and other exchanges apply their equivalent prohibitions. Simultaneously, the CME Group is proposing to eliminate its express prohibition against making bids or offers that, if accepted, would cause a position limit violation Instead, the exchange suggests that such bids or offers might be deemed “disruptive,” and contrary to its express prohibition against disruptive trading or a general offense. CME Group’s proposed amendment is expected to be effective February 6.
Compliance Weeds: CME Group’s proposed rule amendments will conform the exchange’s prohibitions with those of the CFTC and ICE Futures U.S. The CME Group is currently unique in prohibiting under all circumstances bids or offers that if executed would cause a position limit violation.