CME Rule 534: Wash Trades Prohibited

Elise Fleischaker Rules And Regulations

cmegroup No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash trades or wash sales).  Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades.  Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.