CME Group fines prop trading firm Hertshten Group for allegedly engaging in disruptive practices
International derivatives marketplace CME Group has posted a notice of disciplinary action against Hertshten Group Limited.
Pursuant to an offer of settlement in which Hertshten Group Limited neither admitted nor denied the rule violations or factual findings upon which the penalty is based, a Panel of the Chicago Board of Trade (CBOT) Business Conduct Committee found that Hertshten Group Limited, a proprietary trading firm, together with the analysts of its subsidiary in India, engaged in messaging activity beginning in pre-open periods that caused price and volume aberrations in multiple markets.
Specifically, on July 9, 2024, Hertshten Group messaged in a looping pattern with each other during the pre-open period. This behavior contributed to an Indicative Opening Price and caused the market to open with a Velocity Logic Dynamic Circuit Breaker event in the March 2025 30 Day Federal Funds futures market.
On July 25, 2024, Hertshten Group messaged in a looping pattern with each other during the pre-open period. This behavior contributed to an Indicative Opening Price and caused the market to open with a Velocity Logic Dynamic Circuit Breaker event in the December 2024 30 Day Federal Funds futures market.
As a direct result, CME Group’s Global Command Center found it necessary to adjust December 2024 30 Day Federal Funds futures prices. Due to CME Globex implied-order functionality, these price adjustments also impacted three other markets.
On December 10, 2024, Hertshten Group messaged in a looping pattern with each other during the pre-open period. This behavior contributed to an Indicative Opening Price and caused the market to open with a Velocity Logic Dynamic Circuit Breaker event in the March 2025 30 Day Federal Funds futures market.
Additionally, the Panel found that Hertshten Group failed to diligently supervise its agents and take appropriate action to prevent disruptive activity.
The Panel concluded that as a result of the foregoing, Hertshten Group Limited violated CBOT Rules 432.W., 432.Q., and 575.D.
In accordance with the settlement offer, the Panel ordered Hertshten Group Limited to pay a $95,000 fine.
The effective date of the disciplinary notice is February 27, 2026.
