Flatiron Futures Traders LLC and one of its traders were ordered to pay $759,910.22 in disgorgement under a CME disciplinary settlement, according to FX News Group’s account of the exchange notice. The report says a CME Business Conduct Committee panel made findings on 20 October and the notice took effect on 22 October 2026. Flatiron accepted the settlement without admitting or denying the findings.[1]
The reported conduct occurred from 23 May 2022 to 2 January 2023 in E-mini S&P 500 and E-mini Nasdaq-100 futures. According to the cited panel account, a trader repeatedly posted sizeable or layered bids or offers near the best prices without an intent to execute them. After receiving fills on the opposite side of the order book, those larger displayed orders were cancelled. The reported pattern also included switching between apparent buy and sell pressure, seeking price improvements from other market participants before dealing into them.[1]
Displayed orders and opposite-side fills
Conduct and remedies described in the disciplinary report
| Dimension | Reported CME finding | Why the distinction matters |
|---|---|---|
| Instruments | E-mini S&P 500 and E-mini Nasdaq-100 futures | Futures, not retail spot forexSource 1 |
| Conduct period | 23 May 2022–2 Jan 2023 | Historical trades, 2026 dispositionSource 1 |
| Trading pattern | Layering large orders then cancelling after opposite-side fills | Intent at entry distinguishes deceptive ordersSource 1 |
| Reported rules | CME 575.A and 575.B; firm liability via 433 | Exchange disciplinary rulesSource 1 |
| Profit to disgorge | $759,910.22 | Return of alleged gains, not a customer feeSource 1 |
| Liability | Joint and several for firm and trader | One combined obligation, not two amountsSource 1 |
| Settlement posture | Without admission or denial | Panel outcome is not criminal convictionSource 1 |
A displayed bid or offer can influence other traders’ view of supply and demand before it executes. Rule 575.A prohibits entering an order with the intention at entry to cancel it before execution or modify it to avoid execution; Rule 575.B prohibits messages intended to mislead participants. Legitimate cancellations alone do not establish that intent. The reported sequence matters because it links large displayed orders to opposite-side fills and subsequent cancellation.[1][2]
FX News Group reports that CME applied Rule 433 to hold the firm strictly liable for its trader’s conduct. The $759,910.22 represents profits ordered to be disgorged jointly and severally by firm and trader: one obligation for which both are responsible. It is not two separate $759,910.22 fines or a stated customer compensation award.[1]
For surveillance teams, the relevant pattern combines the size and placement of displayed orders, trades on the other side, cancellations and repeated changes in apparent buy or sell pressure. Counting cancellations by themselves would miss the context needed to distinguish an ordinary trading strategy from orders entered to mislead.[1][2]
Case-specific findings and the monetary order are attributed to FX News Group’s report. The CME rule text was checked directly; the original case notice was not retrievable for independent comparison.[1][2]
Sources & further reading
- Flatiron Futures Traders to pay disgorgement over alleged CME rule violations — report of CME disciplinary notice FX News Group · 23 Oct 2026 · Accessed 29 Oct 2026
- CME Group Rulebook Chapter 5 — Rule 575 on disruptive practices CME Group · Accessed 29 Oct 2026