CME Rule 432: General Offenses

Neurensic Rules And Regulations

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It shall be an offense:

A. to have an interest in, operate or knowingly act on behalf of a bucket-shop, or knowingly make any transaction with a bucket-shop;

B.

1. to engage in fraud or bad faith;

2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;

C. to engage in dishonest conduct; D. to create or report a false or fictitious trade;

E. to extort or attempt extortion;

F. to buy or sell any Exchange futures or options contract with the intent to default on such purchase or sale;

G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts;

H. to engage in, or attempt to engage in, the manipulation of prices of Exchange futures or options contracts; to corner or squeeze, or attempt to corner or squeeze, the underlying cash market; or to purchase or sell, or offer to purchase or sell Exchange futures or options contracts, or any underlying commodities or securities, for the purpose of upsetting the equilibrium of the market or creating a condition in which prices do not or will not reflect fair market values;

I. to make a verbal or written material misstatement to the Board, a committee, or Exchange employees;

J. to knowingly disseminate false, misleading or inaccurate information concerning crop or market information or conditions that affect or may affect the price of any Exchange futures or options contract or spot transaction in the underlying commodity;

K. to trade or accept performance bonds after insolvency;

L.

1. to fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation;

2. to fail to fully answer all questions and produce all books and records at such hearing or in connection with any investigation, or to make false statements;

3. to fail to produce any books or records requested by duly authorized Exchange staff, in the format and medium specified in the request, within 10 days after such request is made or such shorter period of time as determined by the Market Regulation Department in exigent circumstances;

M. to use or disclose, for any purpose other than the performance of an individual’s official duties as a member of any committee or the Board of Directors, any non-public information obtained by reason of participating in any Board of Directors or committee meeting or hearing;

N. to knowingly accept, directly or indirectly, a trade on the Exchange for the account of a nonmember employed on the floor of the Exchange;

O. for a Member to permit the use of facilities or membership privileges in a manner that is detrimental to the interest or welfare of the Exchange or results in a violation of Exchange Rules or the Commodity Exchange Act;

P. for a Clearing Member to fail to maintain minimum financial requirements;

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

R. to fail to submit to arbitration any dispute which Exchange staff, an arbitration panel or the Board decides should be arbitrated pursuant to Chapter 6; or to fail to comply with a final arbitration award;

S. to fail, after hearing, to comply with an order of the Board, Exchange staff or any hearing committee;

T. to engage in dishonorable or uncommercial conduct;

U. except where a power of attorney or similar document has been executed pursuant to Rule 956, for any party to accept or transmit a customer order which has not been specifically authorized;

V. to be expelled from a U.S. or foreign designated commodities or securities exchange;

W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange;

X. to aid or abet the commission of any offense against the Exchange;

Y. to improperly use the Globex platform or any electronic trading or clearing platform owned or controlled by CME Group or permit the unauthorized use of such platforms; and/or

Z. for a Member to fail to disclose to his qualifying Clearing Member that an involuntary bankruptcy petition has been filed against him or, in the case of a voluntary bankruptcy proceeding, that he has filed or has formed a definite intention to file for bankruptcy.

source http://www.cmegroup.com/rulebook/CME/I/4/4.pdf  © Copyright Chicago Mercantile Exchange, Inc.