Hi, Collective2 Members:
Later today you may read that the CME fined Collective2 $30,000. They did this because in January 2018, so many customers were following one trading strategy on Collective2 that, when a trade was issued, the price of a futures contract changed.
You can read my full opinion on this matter here:
I was very surprised by the CME’s notion that customers of their exchange need to make sure that they do not place orders that affect prices. It seems to me that that is the very essence of an exchange: prices are supposed to change based on supply and demand.
But Collective2 is a small company, and we do not have resources to litigate this further, so we have agreed to settle the matter.
We will respect the CME’s wishes and make changes to our software so that it monitors market conditions when placing trades.