The CME Group has fined proprietary trading firm Tanius Technology, LLC $150,000, following a disciplinary review by the Chicago Board of Trade (CBOT).
Under a settlement agreement, Tanius neither admitted nor denied the rule violations. On January 14, 2026, a Panel of the CBOT Business Conduct Committee issued its findings.
The Panel found that between January 2020 and December 2022, Tanius used a trading strategy in markets with a pro-rata matching algorithm. The firm entered multiple maximum-quantity orders to secure a larger share of passive fills.
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Trading Activity During Treasury Roll Periods
During Treasury futures roll periods, Tanius placed a large number of maximum-quantity orders. These orders rested at the best price levels in the 2-Year, 5-Year, and 10-Year Treasury spread order books.
The Panel said immediate execution of these orders was unlikely. However, if execution had occurred, Tanius would have faced margin requirements exceeding the net liquidation value of its accounts at that time.
Risk Exposure and Market Impact
According to the Panel, the firm’s strategy allowed it to receive a disproportionate number of fills. This outcome did not align with its ability to absorb immediate execution risk.
The Panel noted that this behavior had the potential to affect other passive market participants. It concluded that Tanius created an imbalance between its order exposure and its financial capacity.
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Rule Violations and Penalty
The Panel determined that Tanius violated CBOT Rules 432.B.2 and 432.Q. These rules address disruptive trading practices and required risk controls.
As part of the settlement, the Panel ordered Tanius Technology, LLC to pay a $150,000 fine. The decision did not include additional sanctions.
The enforcement action forms part of CME Group’s ongoing efforts to monitor trading behavior and maintain orderly markets.
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