This week the Market Regulation Department at the CME issued an updated Market Regulation Advisory Notice (MRAN) concerning the use of material non-public information. The update amends CME Rule 532 which now aligns to the CFTC Final Rule 180.1 and associated guidance regarding material non-public information.
Rule 532 is designed to prohibit a person from improperly using, disclosing or soliciting material non-public information with some limited exceptions. These prohibitions do not apply to orders relating to Block Trades, Exchange for Related Positions (EFRPs) and “Prearranged, Pre-Negotiated and Non-competitive Trades Prohibited”, provided these are executed in line with the appropriate rules governing each. Traders must ensure that any disclosure of non-public order information relating to executions made off the back of allowable private negotiation requirements do not exceed what is allowable under the rules or any regulatory guidance provided by the CME.
The precise wording of Rule 532 is outlined on the second page of the advisory notice (click here). Amendments to Rule 532 including a marked up version of the rule can be found here. The new rule applies from 29 September 2023.
