CME Group Orders DRW Investments to Disgorge $465,421.86

CME Group, a prominent international derivatives marketplace, has announced that it has taken disciplinary action against DRW Investments LLC due to violations related to its employee's trading activities. The company has been ordered to disgorge $465,421.86, the amount the employee gained through improper trading tactics.

According to a notice issued by the CME Group, a panel of the Chicago Board of Trade (CBOT) Business Conduct Committee found that an employee of DRW engaged in an improper trading strategy from February 3, 2022, through July 5, 2022. The employee entered large orders in various U.S. Treasury futures markets, with the intent to cancel or modify these orders before execution once they received fills on smaller, highly correlated orders.

The employee's actions resulted in DRW benefiting by $465,421.86. The panel concluded that, as a result of the employee's actions, DRW was strictly liable for the violations under Rule 575.A., despite the company not admitting or denying the rule violations.

The CME Group ordered DRW Investments to pay the disgorgement amount in line with the offer of settlement. DRW has neither admitted nor denied the factual findings or the rule violations upon which the penalty is based.