CME Suspends Traders for Alleged Sarao-Like Manipulation

Banjo · May 1, 2015

CME Group Inc. said it suspended two traders for placing manipulative trades, similar to the ones that got Navinder Singh Sarao into headlines around the world last week.

http://www.bloomberg.com/news/artic...s-for-alleged-sarao-like-futures-manipulation

syswizard · May 1, 2015

Banjo said:
CME Group Inc. said it suspended two traders for placing manipulative trades, similar to the ones that got Navinder Singh Sarao into headlines around the world last week.

http://www.bloomberg.com/news/artic...s-for-alleged-sarao-like-futures-manipulation
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re: "the Commodity Futures Trading Commission, last year said CME was taking too long to complete investigations of improper trading."

This is all a load of BS....actually this is actual "spoofing" by the CME Group ! They are spoofing the regulators....this is so crazy.

Why did they not complete the investigation ? : They stood to lose trading fees if the CFTC deemed the activity inappropriate or illegal.

This latest move by the CME Group to suspend these traders is meant ONLY to "save face".
Ask yourself....why wasn't this done YEARS ago ? Again, it's all about the profits....from the fees.

i960 · May 2, 2015

Also here:

http://www.zerohedge.com/news/2015-...ted-after-zero-hedge-report-hft-gold-spoofing

NOTICE OF SUMMARY ACCESS DENIAL ACTION: COMEX 15-0103-SA-1

NON-MEMBER:

NASIM SALIM

CME RULE: 413. SUMMARY ACCESS DENIAL ACTIONS (in part)

A. The Chief Regulatory Officer or his delegate, upon a good faith determination that there are substantial reasons to believe that such immediate action is necessary to protect the best interests of the Exchange, may order that: 1) any party be denied access to any or all CME Group markets; 2) any party be denied access to the Globex platform; 3) any party be denied access to any other electronic trading or clearing platform owned or controlled by CME Group; or (4) any Member be immediately removed from any trading floor owned or controlled by CME Group.

FINDINGS

On April 30, 2015, CME Group’s Market Regulation Department (“Market Regulation Department”), through its Chief Regulatory Officer, summarily denied Nasim Salim (“Salim”) direct and indirect access to all CME Group markets, the CME Globex electronic trading platform, any other electronic trading or clearing platform owned or controlled by CME Group, and all trading floors owned or controlled by CME Group. The summary access denial prohibits trading, placing orders, and controlling or directing the trading for any person or entity in any CME Group exchange product. The summary access denial further prohibits the affiliation or business dealing with any member or member firm of CME, CBOT, NYMEX, or COMEX.

CME Group’s Chief Regulatory Officer’s summary access denial of Salim was based upon the findings of an investigation conducted by the Market Regulation Department, which revealed that on multiple trade dates during the time period of March 1, 2015 through April 28, 2015, Salim engaged in a pattern of activity in which he repeatedly entered orders or layered multiple orders for Gold and Silver futures contracts without the intent to trade. Specifically, Salim entered these orders or layered multiple orders to encourage market participants to trade opposite his smaller orders resting on the opposite side of the book. After receiving a fill on his smaller orders, Salim would then cancel the resting order or layered multiple orders that he had entered on the opposite side of the order book.

Salim introduced Heet Khara (“Khara”), who is also the subject of a summary access denial action, to his first FCM and Salim had an account at the second FCM at which Khara traded in a disruptive manner. Further, it appears that on multiple occasions Salim and Khara coordinated efforts to engage in disruptive activity. In an example from April 28, 2015, Salim entered small-lot orders on one side of the market in Gold futures, after which Khara entered large orders on the opposite side. When Salim’s small orders were filled, Khara canceled the large orders. Salim has not responded to correspondence from the Exchange.

The foregoing conduct, as well as Salim’s failure to cooperate with the Exchange, present a good faith determination that there are substantial reasons to believe that such immediate action is necessary to protect the best interests of the Exchanges and the marketplace.

ACCESS DENIAL:

Pursuant to Rule 413, this access denial will remain in effect for 60 days, commencing on the effective date below and continuing through and including June 29, 2015, unless the Chief Regulatory Officer or his delegate provides written notice that this access denial will be extended for an additional period of time.
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IMO, CME is up to something here. This new found interest in suddenly becoming concerned is reeks of artificiality and motives. Best to appear proactive if you might think you're next.

loyek590 · May 2, 2015

I cancel a lot of orders everyday, but I am just a small trader. A cancellation charge would really hurt me. But a time limit before cancellation executes I could deal with if it was a reasonable time limit. What's reasonable? Beats the heck out of me. I know what is "reasonable" for me, but it certainly wouldn't be reasonable to some guy with an hft algo.

i am nobody · May 2, 2015

loyek590 said:
I cancel a lot of orders everyday, but I am just a small trader. A cancellation charge would really hurt me. But a time limit before cancellation executes I could deal with if it was a reasonable time limit. What's reasonable? Beats the heck out of me. I know what is "reasonable" for me, but it certainly wouldn't be reasonable to some guy with an hft algo.
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Why do you cancel orders?

I watch and wait till I want to trade. At the right moment I buy packages at market price. After each package I check if the price for the next package is still acceptable. If acceptable I buy the next package at market price and so on.

If you place an order and cancel it, it means you have no clue what the market will do. If you would know what the market will do you would place orders at the right moment. Which means you don't have to cancel later.

Or maybe I should still learn a lot about order and cancel techniques that I am not aware of.

loyek590 · May 2, 2015

i am nobody said:
Why do you cancel orders?

I watch and wait till I want to trade. At the right moment I buy packages at market price. After each package I check if the price for the next package is still acceptable. If acceptable I buy the next package at market price and so on.

If you place an order and cancel it, it means you have no clue what the market will do. If you would know what the market will do you would place orders at the right moment. Which means you don't have to cancel later.

Or maybe I should still learn a lot about order and cancel techniques that I am not aware of.
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I cancel orders because what looked so good suddenly no longer looks so good. You are correct, I have no clue what the market will do, and I know of no human being that does. I do know how I am going to bet if certain things happen. And when things change my bets change and that often involves cancellation. One of the perks of trading financials vs sportsbetting.

i am nobody · May 2, 2015

loyek590 said:
I cancel orders because what looked so good suddenly no longer looks so good. You are correct, I have no clue what the market will do, and I know of no human being that does. I do know how I am going to bet if certain things happen. And when things change my bets change and that often involves cancellation. One of the perks of trading financials vs sportsbetting.
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Nobody knows what the market will do but everybody can try to increase the probability that they take the right direction. The higher the probablity the lower the number of cancellations.

i960 · May 2, 2015

Modifying orders also counts as a cancel but with most trading setups that occurs after the trade is already live. I personally do not think a small cancel fee would be a large impediment to most people. Let's say you made it 10c or something (which is probably high). You could cancel 100 lots a day for 10$ total. Part of it could be made up for in fills. Basically the way EUREX does it.