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The Three E's for The Modern Compliance Department

Traders Magazine Online News, March 2, 2017

Jay Biondo

In early February, the CME Group broadened its spoofing rule to include “attempted spoofing,” and increased the amount of potential fines for disruptive trading activity and attempted market manipulation. Not only did this news catch my eye, but it confirmed what I have been expecting to see for a while: the CFTC is starting to put increased pressure on the exchanges to detect and punish illegal trading activity. The CME is not the only derivatives exchange that has been feeling the pressure from the CFTC, as ICE has been mandated to speed up their investigations of market manipulation as well.  

Jay Biondo

Craig Pirrong, a finance professor at the University of Houston, told Reuters, that under the new rules, the CME will have more latitude to pursue spoofers and other rogue traders. It is more clear than ever before, that compliance officers at trading organizations of all kinds must be thinking about the most effective ways to ensure that their traders are playing by the rules.

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