Five traders agreed to settle Chicago Mercantile Exchange "spoofing" charges.
In unrelated schemes, the traders had engaged in (i) placing and canceling multiple orders in order to cause execution on other orders or (ii) layering.
Commentary
The fact that the CME settled five separate actions on spoofing is a good sign of the regulatory and enforcement attention that the exchange is giving to the issue. This means that firms need to step up their internal procedures to monitor the activities of their traders for conduct that the regulators may disfavor.
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