CME Market Surveillance Found Lacking by Its Chief Regulator
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CME Group Inc. must improve how it polices trading on some of the biggest exchanges in the world, according to the company’s primary regulator.
Although CME’s markets generally meet their surveillance obligations, shortcomings include taking too long to finish probes, having insufficient investigators and imposing penalties that are too small, the Commodity Futures Trading Commission said yesterday. Two CME markets, Nymex and Comex, need to keep developing ways of detecting a form of manipulation known as spoofing, according to the CFTC.