CME Group Imposes Penalties on Marcio Tavares for Trading Rule Violations

​International derivatives marketplace CME Group today has announced significant disciplinary action against Marcio Tavares, following a detailed investigation into alleged trading violations. The Chief Regulatory Officer has charged Tavares with breaching CME Rules 432.L.1., 575.A., and 575.B.

The allegations assert that between September 19, 2022, and November 10, 2022, Tavares engaged in manipulative trading practices. Specifically, Tavares reportedly entered substantial orders in the December 2022 Australian Dollar, Euro FX, New Zealand Dollar, Canadian Dollar, and British Pound futures markets with the intent to cancel or modify these orders before execution, or to mislead other traders.

The charges include placing large orders on one side of the market and then executing smaller aggressive orders on the opposite side, only to cancel the large orders after the smaller ones were completed. Additionally, Tavares is accused of placing multiple passive orders deep in the order book, intending to cancel them before execution. These actions were reportedly designed to mislead other market participants about market depth and liquidity.

A Hearing Panel Chair of the CME Business Conduct Committee (BCC) found Tavares guilty of the charges after he failed to submit a written response and waived his right to a hearing. The BCC imposed a $70,000 fine on Tavares and permanently barred him from accessing any CME Group trading floors or related platforms, effective August 12, 2024.