CME Group, the Chicago-based derivatives market operator, fined Lei Shu $60,000 and permanently suspended the trader from its trading floors. The company found Xu guilty of engaging in disruptive practices in the foreign exchange futures markets, thus violating its rules.
According to CME Group, between March 2 and October 8, 2021, Shu placed orders near the top of the book in several foreign exchange futures markets, including Australian dollar futures, British pound futures, and euro futures. In the derivatives industry, this practice describes the process of placing orders close to the best bid and ask prices in an effort to improve the chances of the order being executed at a favorable price.
On the contrary, CME Group’s rule in this regard requires that all orders be entered for the purpose of executing transactions in good faith. The rule on prohibited disruptive practices also requires that all messages that are not actionable are entered in good faith for legitimate purposes.
“Show engaged in a pattern of entering or modifying multiple orders, usually of the same order size in the market at one or several price levels on the same side of the book and then canceling all orders within 10 seconds of placing the first order,” CME Group explained in a statement. notice.
In defense of this allegation, the derivatives market operator said the trader was invited to submit a written response, but did not respond. As a result, CME Groups Chief Regulatory Officer Shaw was indicted in September last year for accusing the trader of violating its rules regarding illegal disruptive practices and failing to appear before an investigative hearing panel.
Furthermore, on April 25, 2023, the CME Hearing Committee Chairman reached a determination that Shaw, as a result of his refusal to respond to the allegation, had admitted the charges against him. The trader was later found guilty.
The permanent suspension issued against Shu also means that he is barred from accessing any particular contract market, and derivatives clearing
clearing
Clearing is a general term that simply means many different things depending on the topic and the relevant industry. Most commonly, this refers to the mutual exchange between banks of checks and bills of exchange, and the settlement of spreads, or total claims settled in a clearinghouse. In finance and banking, the word clearing has different meanings depending on which business model is most specific. Transferring checks from the bank where they were deposited to the bank on which they were drawn. y
Clearing is a general term that simply means many different things depending on the topic and the relevant industry. Most commonly, this refers to the mutual exchange between banks of checks and bills of exchange, and the settlement of spreads, or total claims settled in a clearinghouse. In finance and banking, the word clearing has different meanings depending on which business model is most specific. Transferring checks from the bank where they were deposited to the bank on which they were drawn. y
Read this term regulation or exchange to implement
to implement
Execution is the process during which a client submits an order to a brokerage, which subsequently triggers its execution resulting in an open position in a particular asset. Execution of the order occurs only when it is filled. There is usually a time delay between order placement and execution which is called latency. In the retail forex trading space, trusted brokers always strive to provide the best execution to their clients in order to maintain a solid business relationship with them. This is Shrek
Execution is the process during which a client submits an order to a brokerage, which subsequently triggers its execution resulting in an open position in a particular asset. Execution of the order occurs only when it is filled. There is usually a time delay between order placement and execution which is called latency. In the retail forex trading space, trusted brokers always strive to provide the best execution to their clients in order to maintain a solid business relationship with them. This is Shrek
Read this term A facility owned or controlled by the CME Group.
CME Group, the Chicago-based derivatives market operator, fined Lei Shu $60,000 and permanently suspended the trader from its trading floors. The company found Xu guilty of engaging in disruptive practices in the foreign exchange futures markets, thus violating its rules.
According to CME Group, between March 2 and October 8, 2021, Shu placed orders near the top of the book in several foreign exchange futures markets, including Australian dollar futures, British pound futures, and euro futures. In the derivatives industry, this practice describes the process of placing orders close to the best bid and ask prices in an effort to improve the chances of the order being executed at a favorable price.
On the contrary, CME Group’s rule in this regard requires that all orders be entered for the purpose of executing transactions in good faith. The rule on prohibited disruptive practices also requires that all messages that are not actionable are entered in good faith for legitimate purposes.
“Show engaged in a pattern of entering or modifying multiple orders, usually of the same order size in the market at one or several price levels on the same side of the book and then canceling all orders within 10 seconds of placing the first order,” CME Group explained in a statement. notice.
In defense of this allegation, the derivatives market operator said the trader was invited to submit a written response, but did not respond. As a result, CME Groups Chief Regulatory Officer Shaw was indicted in September last year for accusing the trader of violating its rules regarding illegal disruptive practices and failing to appear before an investigative hearing panel.
Furthermore, on April 25, 2023, the CME Hearing Committee Chairman reached a determination that Shaw, as a result of his refusal to respond to the allegation, had admitted the charges against him. The trader was later found guilty.
The permanent suspension issued against Shu also means that he is barred from accessing any particular contract market, and derivatives clearing
clearing
Clearing is a general term that simply means many different things depending on the topic and the relevant industry. Most commonly, this refers to the mutual exchange between banks of checks and bills of exchange, and the settlement of spreads, or total claims settled in a clearinghouse. In finance and banking, the word clearing has different meanings depending on which business model is most specific. Transferring checks from the bank where they were deposited to the bank on which they were drawn. y
Clearing is a general term that simply means many different things depending on the topic and the relevant industry. Most commonly, this refers to the mutual exchange between banks of checks and bills of exchange, and the settlement of spreads, or total claims settled in a clearinghouse. In finance and banking, the word clearing has different meanings depending on which business model is most specific. Transferring checks from the bank where they were deposited to the bank on which they were drawn. y
Read this term regulation or exchange to implement
to implement
Execution is the process during which a client submits an order to a brokerage, which subsequently triggers its execution resulting in an open position in a particular asset. Execution of the order occurs only when it is filled. There is usually a time delay between order placement and execution which is called latency. In the retail forex trading space, trusted brokers always strive to provide the best execution to their clients in order to maintain a solid business relationship with them. This is Shrek
Execution is the process during which a client submits an order to a brokerage, which subsequently triggers its execution resulting in an open position in a particular asset. Execution of the order occurs only when it is filled. There is usually a time delay between order placement and execution which is called latency. In the retail forex trading space, trusted brokers always strive to provide the best execution to their clients in order to maintain a solid business relationship with them. This is Shrek
Read this term A facility owned or controlled by the CME Group.