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CME Rule 575


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CME Rule 575

  #1 (permalink)
 
TIFONTrader's Avatar
 TIFONTrader 
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I could not find it anywhere on the forum, so here it is. The rule will become effective on Monday, September 15th.

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CME Rule 575-rule-575-cme.pdf  
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  #3 (permalink)
 
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I posted about it in the HFT thread on the 8th, but have directed people to use this thread now.

Mike

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From that Thread...

DarkPoolTrading View Post
As per Mike's post:
CME group rule 575: Disruptive practices prohibited.

Sounds good to me?

Thoughts?

https://fia.org/

There's also an attachment of a presentation on Rule 575.

Personally my opinion...

SMCJB View Post
I thought everything they mention was already illegal, and the last page of the presentation even states that.
"Disruptive practices, such as those detailed in proposed Rule 575,
have always been prohibited by the CME Group exchanges, and
have been prosecuted under the general provisions of Rule 432. "
So given that what does this new rule actually mean? Is it just rhetoric or are they going to start enforcing it when they didn't previously enforce it under Rule 432? If so why weren't they enforcing it already?


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 Massive l 
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Rule 575. Disruptive Practices Prohibited
All orders must be entered for the purpose of executing bona fide transactions. Additionally,
all non-actionable messages must be entered in good faith for legitimate purposes.
A. No person shall enter or cause to be entered an order with the intent, at the time of order
entry, to cancel the order before execution or to modify the order to avoid execution;
B. No Person shall enter or cause to be entered an actionable or non-actionable message
or messages with intent to mislead other market participants;
C. No Person shall enter or cause to be entered an actionable or non-actionable message
or messages with intent to overload, delay, or disrupt the systems of the Exchange or
other market participants; and
D. No person shall enter or cause to be entered an actionable or non-actionable message
with intent to disrupt, or with reckless disregard for the adverse impact on, the orderly
conduct of trading or the fair execution of transactions.
To the extent applicable, the provisions of this Rule apply to open outcry trading as well as
electronic trading activity. Further, the provisions of this Rule apply to all market states,
including the pre-opening period, the closing period and all trading sessions.

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Massive l View Post
Rule 575. Disruptive Practices Prohibited
All orders must be entered for the purpose of executing bona fide transactions. Additionally,
all non-actionable messages must be entered in good faith for legitimate purposes.
A. No person shall enter or cause to be entered an order with the intent, at the time of order
entry, to cancel the order before execution or to modify the order to avoid execution;
B. No Person shall enter or cause to be entered an actionable or non-actionable message
or messages with intent to mislead other market participants;
C. No Person shall enter or cause to be entered an actionable or non-actionable message
or messages with intent to overload, delay, or disrupt the systems of the Exchange or
other market participants; and
D. No person shall enter or cause to be entered an actionable or non-actionable message
with intent to disrupt, or with reckless disregard for the adverse impact on, the orderly
conduct of trading or the fair execution of transactions.
To the extent applicable, the provisions of this Rule apply to open outcry trading as well as
electronic trading activity. Further, the provisions of this Rule apply to all market states,
including the pre-opening period, the closing period and all trading sessions.

HAHA @srgtroy. This could affect your trading style...

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  #7 (permalink)
 
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Intent is hard to prove.

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What is a non-actionable message? Is it a pit thing like giving someone the finger?

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  #9 (permalink)
 
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 Big Mike 
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tturner86 View Post
What is a non-actionable message? Is it a pit thing like giving someone the finger?

Flooding the channel with bid ask changes well beyond the current last, or other changes that consume bandwidth and cause latency, giving advantages to those who are doing it.

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seems like political pressure has won it and now created a rule/law which is totally left up to interpretation by an agency that has been proven to be maybe not so.
My 2 cents

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