CME Group Fines Telesto Sciences $125,000 for Disruptive Trading

International derivatives marketplace CME Group has posted a disciplinary notice against Telesto Sciences LLC, a US-based proprietary trading firm.

Pursuant to a settlement offer in which Telesto neither admitted nor denied the violations, a New York Mercantile Exchange Business Conduct Committee panel found that from June 28, 2022, through October 11, 2023, Telesto’s automated trading system engaged in a pattern of entering large numbers of mass action cancel messages across multiple session IDs in E-mini S&P 500 futures. 

These mass cancels caused a Globex match engine delay, followed immediately by aggressive orders that traded ES futures and other equity futures microseconds later. Telesto then liquidated those positions via iceberg orders and aggressor fill-and-kill orders. 

Despite receiving notice of its disruptive activity, Telesto continued operating its ATS for nearly a year without corrective action, showing reckless disregard for orderly trading and fair execution. The activity generated a profit of $310,530. 

The panel concluded Telesto violated CME Rules 575.C.2 and 575.D, ordering a $125,000 fine and disgorgement of the $310,530 profit. The notice takes effect July 24, 2026.