Cme Group Inc. · NASDAQ:CME

Cme — Market Regulation Webinar, MENA Edition (September 2025)

58 slides from Cme's conference presentation, Sep 10, 2025

Slide 4: Ask Questions
Ask Questions We encourage you to participate in our discussion today using the Q&A feature available via the WebEx app. To submit questions, please follow these steps: -Click into the Q&A box located on the right side of your screen -Click the “Ask:” drop down menu -Select All Panelists from the li
Slide 7: Disclaimer
Disclaimer Exchange traded derivatives and cleared over-the-counter (“OTC”) derivatives are not suitable for all investors and involve the risk of loss. Exchange traded and OTC derivatives are leveraged instruments and because only a percentage of a contract’s value is required to trade, it is possi
Slide 8: Disclaimer
Disclaimer BrokerTec Europe Limited is authorised and regulated by the UK Financial Conduct Authority. NEX SEF Limited is authorised and regulated by the UK Financial Conduct Authority and is registered with the CFTC as a Swap Exchange Facility. CME Amsterdam B.V. is regulated in the Netherlands by
Slide 9: Agenda
Agenda 1 U.S. Regulatory Model 2 CME Group Market Regulation Department 3 Investigatory and Disciplinary Process 4 Trade Practice Rules 5 Regulatory Resources CME GROUP PUBLIC © 2025 CME Group. All rights reserved.
Slide 11: U.S. Regulatory Model
U.S. Regulatory Model US • First Line of Defense: Department of - Self-Regulatory Organizations (SROs) Justice • Federal Administrative Agency Oversight: - Commodity Futures Trading Commission CFTC (CFTC) • Federal Criminal Authority: - United States Department of Justice CME Group CME GROUP PUBLIC
Slide 12: Regulatory Obligations of a Designated Contract Market
Regulatory Obligations of a Designated Contract Market U.S. Commodity Exchange Act US Commodity Exchange Act requires contract markets to comply with 23 core principles, including requirements to: • Establish, monitor, and enforce compliance with rules of the contract market, including rules prohibi
Slide 13: Regulatory Obligations of a Designated Contract Market
Regulatory Obligations of a Designated Contract Market Regulatory Obligations of a Designated Contract Market US Commodity Futures Trading Commission (CFTC) imposes additional regulations on contract markets: • Market participants must consent to the jurisdiction of the exchange • Exchanges must hav
Slide 14: CME Group Consent to Exchange Jurisdiction
CME Group Consent to Exchange Jurisdiction Rule 418 | Market Regulation Advisory Notice Any person initiating or executing a transaction on the exchange expressly consents to jurisdiction of the exchange and agrees to be bound by and comply with the rules of the exchange • Jurisdiction applies wheth
Slide 16: CFTC Regulations – Obligations on DCMs concerning Staff
CFTC Regulations – Obligations on DCMs concerning Staff CFTC Regulations Part 38 Subpart C “Compliance With Rules” & Subpart N “Disciplinary Procedures” §38.155 Compliance staff and resources (a) Sufficient compliance staff. A designated contract market must establish and maintain sufficient complia
Slide 17: CFTC Regulations – Obligations on DCMs concerning Staff
CFTC Regulations – Obligations on DCMs concerning Staff Appendix B to Part 38 - Guidance on, and Acceptable Practices in, Compliance With Core Principles Principle 16 of section 5(d) of the Act: CONFLICTS OF INTEREST The board of trade shall establish and enforce rules – (3) Regulatory oversight com
Slide 18: CME Group Market Regulation Department
CME Group Market Regulation Department 6 Functional Groups within Market Regulation Department Trade Practice Investigations Enforcement Spoofing | Messaging | Wash/Cross | Options | Money Pass | Blocks | Cash Markets | Research Disciplinary Actions | Arbitrations • Detect and investigate potential
Slide 19: CME Group Market Regulation Department
CME Group Market Regulation Department Teams and Programs within Market Regulation Department Market Data Reg Data Rules & Trade Practice Investigations Enforcement Surveillance Investigations Science Outreach Position Disruptive Audit Trail Disciplinary Regulatory Rules & Limits & Spooﬁng Trading R
Slide 20: Rules & Regulatory Outreach
Rules & Regulatory Outreach Providing participants with information and resources necessary to meet compliance needs The outreach program aims to: The Rules and Regulatory Outreach Team Erin Middleton • Effectively communicate rule modifications, Chicago rule advisories and other rules-based informa
Slide 22: The Investigatory Process
The Investigatory Process No. Close Information - Program Review Request Yes. But a Letter of Rule Letter of - Complaint Review Violation? Warning is - Independent Research sufficient. Warning Yes or maybe yes. Investigative Further investigation Case Case Initiation is necessary. Notice Rule Rule D
Slide 23: The Investigatory Process
The Investigatory Process No. Close - Program Review - Compliant Review Rule Yes. But a Letter of Letter of - Independent Violation? Warning is sufficient. Warning Research Information Request Yes or maybe yes. Further Investigative investigation is necessary. Case Information Request • Market Regul
Slide 24: The Investigatory Process – Information Request
The Investigatory Process – Information Request Types of information requested to be provided during Investigatory process Request Letters – Information Collection Investigatory Process – More detailed Requests (Initial Review) (Investigative Case) • Contact information for participant (Operator ID)
Slide 25: The Investigatory Process – Information Request
The Investigatory Process – Information Request Communications with firms and market participants during Investigatory process • The subject line of an information request contains a file number: - Files beginning with “RSRH” reflect that the request is being sent as part of a programmatic review or
Slide 26: The Investigatory Process – Recorded Interviews
The Investigatory Process – Recorded Interviews Rule 407 The Market Regulation Department is authorized to take recorded interviews pursuant to an Exchange investigation • Parties and witnesses have the right to representation • The failure to appear at a scheduled interview or to answer all of the
Slide 27: Summary Fines for Reporting Infractions
Summary Fines for Reporting Infractions Rule 512 | Market Regulation Advisory Notice • The Rule requires all data, records and other information required to be reported to the Exchange or Clearing House to be submitted in an accurate, complete, and timely manner. • Market Regulation deploys an inter
Slide 28: Summary Fines for Reporting Infractions
Summary Fines for Reporting Infractions Rule 512 | Market Regulation Advisory Notice • The Market Regulation staff review team is authorized to issue summary fines, which may not be less than $1,000 or in excess of $5,000 per offense for individuals or $10,000 per offense for firms or facilities • F
Slide 29: Notice of Summary Action
Notice of Summary Action Example of Notice of Summary Action relating to Block Trades Findings - On 20 occasions in June 2020, the firm did not report a block trade in a timely manner or with an accurate execution time to the Exchange. These block trades were executed in June 2020 and July 2020 S&P
Slide 30: Notice of Disciplinary Action
Notice of Disciplinary Action Example of Notice of Disciplinary Action relating to Block Trades Findings - During the time period of June 1, 2019 through June 30, 2019, the firm submitted multiple block trades in Crude Oil, Refined Products and Petrochemicals futures contracts to the Exchange with i
Slide 32: Supervisory Responsibilities for Employees and Agents
Supervisory Responsibilities for Employees and Agents Rule 418, 432.W., 433, 444, 501 and 574 | Market Regulation Advisory Notice It shall be an offense for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchanges • Agents include
Slide 33: Supervisory Responsibilities for Employees and Agents
Supervisory Responsibilities for Employees and Agents Rule 418, 432.W., 433, 444, 501 and 574 | Market Regulation Advisory Notice RA2403-5 Expectations on Supervisory Responsibilities • Training employees and agents involved in Exchange-related activities on the Exchange rules and the associated reg
Slide 34: Supervisory Responsibilities for Employees and Agents
Supervisory Responsibilities for Employees and Agents Rule 418, 432.W., 433, 444, 501 and 574 | Market Regulation Advisory Notice RA2403-5 Expectations on Supervisory Responsibilities (continued) • Taking steps to verify the standing of their client or prospective client in case an intermediary has
Slide 35: CME Group User Identification Requirements
CME Group User Identification Requirements Rule 576 | Market Regulation Advisory Notice RA2012-5 Individual and Team Operator IDs • “Individual Operator ID” should be identified for a single person i) who is a manual trader, ii) who is solely responsible for, and actively monitors at all times, the
Slide 36: Disruptive Practices Prohibited
Disruptive Practices Prohibited Rule 575 | Market Regulation Advisory Notice Bona fide transactions in good faith for legitimate purposes • All orders must be entered for the purpose of executing bona fide transactions • All nonactionable messages must be entered in good faith for legitimate purpose
Slide 37: Disruptive Practices Prohibited
Disruptive Practices Prohibited Rule 575 | Market Regulation Advisory Notice Factors that Market Regulation may consider in assessing a potential violation of Rule 575 • Market conditions; • Subject’s pattern of activity: - Historical trading behavior; - Order entry & cancellation activity, includin
Slide 38: Wash Trade Prohibition
Wash Trade Prohibition Rule 534 | Market Regulation Advisory Notice No person shall place orders where he knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk • A wash trade requires - that the transaction or series of t
Slide 39: Wash Trade Prohibition
Wash Trade Prohibition Rule 534 | Market Regulation Advisory Notice • Traders who frequently enter orders on opposing sides of the market that have a tendency to self-match should employ functionality like CME Group’s self-match prevention (SMP) to automatically block the matching of buy and sell or
Slide 40: Illegal Money Passing Between Accounts
Illegal Money Passing Between Accounts Rule 432.G | Market Regulation Advisory Notice Prearranged trades for the purpose of passing money or transferring equity between accounts are prohibited • All transactions executed on exchange markets that are submitted for clearing must be made in good faith
Slide 41: Simultaneous Buy and Sell Orders; Trading Against Customers’ Orders Prohibited
Simultaneous Buy and Sell Orders for Different Beneficial Owners; Trading Against Customers’ Orders Prohibited Rule 533 & 531 | Market Regulation Advisory Notice Simultaneous Buy and Sell Orders for Different Beneficial Owners • Opposite orders for different beneficial owners that are simultaneously
Slide 42: Improper Use or Disclosure of Non-Public Information Prohibited
Improper Use or Disclosure of Non-Public Information Prohibited Rule 532 | Market Regulation Advisory Notice Rule 532 prohibits a person from improperly using or disclosing non-public information except in limited circumstances • No person shall directly or indirectly trade (or enter, cancel, or mod
Slide 43: Pre-Execution Communications
Pre-Execution Communications Rule 539 | Market Regulation Advisory Notice Pre-execution communications are permitted in all CME, CBOT, NYMEX and COMEX futures and options, Globex Cross (“G-Cross) provided: • the party for whose benefit the trade is being executed has previously consented to such com
Slide 44: Position Limits, Position Accountability and Reportable Levels
Position Limits, Position Accountability and Reportable Levels Rules 559, 560, 561, and 562 | Market Regulation Advisory Notice Position Limits Accountability Levels Reportable Levels Rule 559/562 Rule 560 Rule 561 • Levels which a market • Levels which a market • Levels at which clearing members, o
Slide 45: Position Limits and Position Accountability Levels
Position Limits and Position Accountability Levels Rules 559, 560 and 562 | Market Regulation Advisory Notice Position Limits Accountability Levels Rule 559/562 Rule 560 • Calculated on a net futures-equivalent basis by contract • Calculated using 3 separate methods including contracts that aggregat
Slide 46: Position Limits, Position Accountability and Reportable Levels
Position Limits, Position Accountability and Reportable Levels Rules 559, 560, 561, and 562 | Market Regulation Advisory Notice Position Limits What is a position limit? • It is a level which a market participant may not exceed unless they have an approved exemption • Position limits are calculated
Slide 47: Position Limits, Position Accountability and Reportable Levels
Position Limits, Position Accountability and Reportable Levels Rules 559, 560, 561, and 562 | Market Regulation Advisory Notice Position Limits What is the process for obtaining an exemption? • Request an application form from the Market Regulation Market Surveillance group - For CME and CBOT produc
Slide 48: Position Limits, Position Accountability and Reportable Levels
Position Limits, Position Accountability and Reportable Levels Rules 559, 560, 561, and 562 | Market Regulation Advisory Notice Accountability Level What is a position accountability level? • It is a level which a market participant may exceed and not be in violation of an Exchange Rule • The Market
Slide 49: Position Limits and Position Accountability Levels
Position Limits and Position Accountability Levels Rules 559, 560 and 562 | Market Regulation Advisory Notice Illustrative calculation of Position Limit and Accountability Level* Position Component Position Limit/Accountability Level Calculation - Long 6,500 Apr GC Futures Long 6,500 Apr GC Futures
Slide 50: Position Limits, Position Accountability and Reportable Levels
Position Limits, Position Accountability and Reportable Levels Rules 559, 560, 561, and 562 | Market Regulation Advisory Notice Reportable Level What is a reportable level? • It is a level at which clearing members, omnibus accounts and foreign brokers are required to submit to the Exchange a daily
Slide 51: Position Limits, Position Accountability and Reportable Levels
Position Limits, Position Accountability and Reportable Levels Rules 559, 560, 561, and 562 | Market Regulation Advisory Notice Reportable Level "Reportable" refers to two requirements: Ownership and Control Reporting ("OCR") Position Reporting (Large Trader report) • Identification of the Owner and
Slide 53: Rulebooks vs. Market Regulation Advisory Notices (MRANs)
Rulebooks vs. Market Regulation Advisory Notices (MRANs) Rules and MRANs are both certified with the CFTC CME GROUP PUBLIC © 2025 CME Group. All rights reserved. 53
Slide 54: Market Regulation Advisory Notices (MRANs)
Market Regulation Advisory Notices (MRANs) Comprehensive rules and detailed advisories provide market participants notice of prohibited conduct and regulatory processes Most MRANs contain: • The text of the rule(s) • Additional information relevant to the rule (technical/contextual) • Contact inform
Slide 55: CME Institute
CME Institute Instructional videos explaining Market Regulation and common regulatory rules and topics Market Regulation Training Course on CME Institute includes following: • Market Reg Overview • The Enforcement Process • Wash Trades • EFRP • Block Trades • Disruptive Practices Prohibited (includi
Slide 56: Firm Regulatory Portal
Firm Regulatory Portal Self-report, Document Response, Investigation Status Inquiry modules on Firm Regulatory Portal https://fltr.cmegroup.com/firmlargetrader/logon.jsp (☞ Link to create a login (if necessary): https://login.cmegroup.com/sso/register/) CME GROUP PUBLIC © 2025 CME Group. All rights
Slide 57: File a Complaint
File a Complaint Filing a Complaint via CMEG website https://www.cmegroup.com/market-regulation/file-complaint.html CME GROUP PUBLIC © 2025 CME Group. All rights reserved. 57

CME Group — Market Regulation Webinar, MENA Edition (September 2025) on 6ix

Cme — Market Regulation Webinar, MENA Edition (September 2025)

Slide 1: Market Regulation MENA Edition

Slide 2: Opening Remarks

Slide 3: Sharif Jaghman

Slide 4: Ask Questions

Slide 5: Erin Middleton

Slide 6: CME Group Market Regulation Overview

Slide 7: Disclaimer

Slide 8: Disclaimer

Slide 9: Agenda

Slide 10: US Regulatory Model

Slide 11: U.S. Regulatory Model

Slide 12: Regulatory Obligations of a Designated Contract Market

Slide 13: Regulatory Obligations of a Designated Contract Market

Slide 14: CME Group Consent to Exchange Jurisdiction

Slide 15: Market Regulation Department

Slide 16: CFTC Regulations – Obligations on DCMs concerning Staff

Slide 17: CFTC Regulations – Obligations on DCMs concerning Staff

Slide 18: CME Group Market Regulation Department

Slide 19: CME Group Market Regulation Department

Slide 20: Rules & Regulatory Outreach

Slide 21: Investigatory and Disciplinary Process

Slide 22: The Investigatory Process

Slide 23: The Investigatory Process

Slide 24: The Investigatory Process – Information Request

Slide 25: The Investigatory Process – Information Request

Slide 26: The Investigatory Process – Recorded Interviews

Slide 27: Summary Fines for Reporting Infractions

Slide 28: Summary Fines for Reporting Infractions

Slide 29: Notice of Summary Action

Slide 30: Notice of Disciplinary Action

Slide 31: Trade Practice Rules

Slide 32: Supervisory Responsibilities for Employees and Agents

Slide 33: Supervisory Responsibilities for Employees and Agents

Slide 34: Supervisory Responsibilities for Employees and Agents

Slide 35: CME Group User Identification Requirements

Slide 36: Disruptive Practices Prohibited

Slide 37: Disruptive Practices Prohibited

Slide 38: Wash Trade Prohibition

Slide 39: Wash Trade Prohibition

Slide 40: Illegal Money Passing Between Accounts

Slide 41: Simultaneous Buy and Sell Orders; Trading Against Customers’ Orders Prohibited

Slide 42: Improper Use or Disclosure of Non-Public Information Prohibited

Slide 43: Pre-Execution Communications

Slide 44: Position Limits, Position Accountability and Reportable Levels

Slide 45: Position Limits and Position Accountability Levels

Slide 46: Position Limits, Position Accountability and Reportable Levels

Slide 47: Position Limits, Position Accountability and Reportable Levels

Slide 48: Position Limits, Position Accountability and Reportable Levels

Slide 49: Position Limits and Position Accountability Levels

Slide 50: Position Limits, Position Accountability and Reportable Levels

Slide 51: Position Limits, Position Accountability and Reportable Levels

Slide 52: Regulatory Resources

Slide 53: Rulebooks vs. Market Regulation Advisory Notices (MRANs)

Slide 54: Market Regulation Advisory Notices (MRANs)

Slide 55: CME Institute

Slide 56: Firm Regulatory Portal

Slide 57: File a Complaint

Slide 58: Thank You