CME Rule 575: Disruptive Trading Practices Explained

Zach ZiliakMarket Rules & Responsibilities

Ziliak Law Associate Doug Cahanin, Founder of Derivatives Law  Blog, wrote this blog on disruptive trading practices on October 21, 2014. It is excerpted below, the full article is available by clicking “read more.”

Starting Point: The Commodity Exchange Act

The Chicago Mercantile Exchange (“CME”) recently issued a new rule, CME Rule 575, and an accompanying Market Regulation Advisory Notice (“Advisory Notice”) that garnered the attention of a majority of market participants. The Rule and Advisory Notice outline disruptive trading practices that the CME finds to be abusive to the orderly conduct of trading or the fair execution of transactions. As an attorney, the Rule and Advisory Notice makes my life easier for two reasons: (1) it does not prohibit any activity that was not already prohibited by either the CEA (as amended by Dodd-Frank) or existing CME rules, and (2) it defines explicitly the activities prohibited under the current rules, giving examples, and defining ambiguous terms.  [Read More…]

Zach Ziliak

Zach Ziliak

An attorney and Chicago Booth MBA, Zachary Ziliak advises early and growth-stage businesses on fundraising, structuring, and operational matters.He is also a founder himself, having established Ziliak Law in 2013. Read more...
Zach Ziliak