Two weeks ago, as we noted here, the CME unveiled Rule 575 - designed to put an end to 'disrputive trading practices' or "rigging." Today is the first day Rule 575 is unleashed to stop "spoofing," "quote stuffing practices," and the "disorderly execution of transactions." So, as Nanex notes, why is the CME still allowing major quote-stuffing?
Each bubble represents the relative number of quotes-per-second... and it appears, despite Rule 575, that CME is still allowing quote-stuffing and spoofing.
But the real effect of Rule 575 may be being seen in the high-beta names - where the algos spend most of their time... there's no support for the idiot-makers anymore...
Though Nanex point out that they suspect Rule 575 is having NO effect with volumes above normal.
I'm not sure #CME575 is having *any* effect at all. Volumes seem above normal too— Eric Scott Hunsader (@nanexllc) September 15, 2014
So yet another useless regulation ignored by the market's participants.