CME Market Rules for TakeProfitTrader PRO+ Traders

CME Group market rules that apply to TakeProfitTrader PRO+ traders include position limits enforced at the exchange level (25 standard contracts or 250 micros maximum across all accounts for front-month futures), Self-Match Prevention (SMP) requirements preventing wash trading, prohibited trading practices including spoofing and layering, and mandatory reporting for large trader positions.

These rules exist at the exchange level—not set by TakeProfitTrader—and violations can result in CME fines ($10,000-$500,000), trading suspensions, or permanent bans from CME exchanges affecting your ability to trade futures anywhere. Unlike TakeProfitTrader's internal rules for PRO simulation accounts, CME rules apply to all PRO+ live funded traders because your orders route to real exchanges (Chicago Mercantile Exchange, CBOT, NYMEX, COMEX) where you're trading alongside institutional participants. Understanding these rules prevents expensive regulatory violations that extend far beyond a simple account reset.

I trade PRO+ and learned these rules after nearly triggering a position limit alert—here's what every live funded trader needs to know about CME compliance.

Quick heads-up: This article is based on my real experience with TakeProfitTrader and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check TakeProfitTrader´s website or their knowledge base.

What CME Group Controls

CME Group operates four major derivatives exchanges:

1. CME (Chicago Mercantile Exchange) – Equity indices, currencies
2. CBOT (Chicago Board of Trade) – Treasuries, grains
3. NYMEX (New York Mercantile Exchange) – Energy products
4. COMEX (Commodity Exchange) – Metals

When you trade PRO+ through TakeProfitTrader, your orders route to these exchanges. You must follow CME's rules, not just TPT's rules.

CME Position Limits

Rule: Maximum contracts you can hold across all accounts in front-month futures

These limits are aggregated across:

• All your TakeProfitTrader PRO+ accounts
• Any personal accounts you trade
• Any other prop firm accounts you have

CME sees everything under your SSN/Tax ID.

Realistic scenario:

You're trading 5 PRO+ accounts, each with 6 MES contracts = 30 total MES. You're nowhere near the 200,000 limit.

Position limits matter for: Institutional traders or very large prop accounts. Most retail/prop traders never approach these limits.

Self-Match Prevention (SMP) - CME Requirement

Rule: Orders from the same trader cannot fill against each other

Enforced by: CME exchange matching engine

How it works:

TakeProfitTrader assigns you an SMP tag. All your PRO+ orders carry this tag. CME's system prevents your buy orders from matching your sell orders.

Why it exists:

Prevents wash trading (trading with yourself to manipulate volume or create false market activity).

Penalty for violations:

• CME investigation
• Fines: $10,000-$50,000 per incident
• Temporary trading suspension
• Permanent ban from CME exchanges

For detailed mechanics: SMP Guide

Prohibited Trading Practices (CME Rules)

1. Spoofing

Definition: Placing orders you intend to cancel before execution to manipulate price

Example:

You place sell order for 50 ES at 5,001 (above market), making it look like heavy selling pressure. Market drops. You cancel the order and go long.

Penalty: $50,000-$500,000 fine + criminal charges (spoofing is a federal crime under Dodd-Frank)

2. Layering

Definition: Placing multiple orders on one side of the market to create false liquidity impression

Example:

You place 10 buy orders at 4,999-4,990 (below market) to make it look like strong buy interest. Price moves up. You cancel all orders.

Penalty: CME fines + potential trading ban

3. Wash Trading

Definition: Buying and selling the same instrument to yourself

Example:

Account A buys 1 ES. Account B sells 1 ES. Both accounts controlled by you, orders match with each other.

Penalty: $10,000+ fine + suspension

How TakeProfitTrader prevents this: SMP automatically prevents wash trades

4. Banging the Close

Definition: Placing large orders right before market close to manipulate settlement price

Example:

3:59:45 PM (15 seconds before close): You dump 50 ES contracts to push settlement price lower.

Penalty: CME investigation + fines

Large Trader Reporting (LTRS)

Rule: If your positions exceed CME's "large trader" threshold, you must report to CFTC

Thresholds (examples):

• ES: 500+ contracts
• CL (crude oil): 350+ contracts
• GC (gold): 300+ contracts

Who reports: Your broker (Rithmic or CQG through TPT), not you directly

What this means for PRO+ traders:

If you're running 5 PRO+ accounts with 6 contracts each = 30 total. You're far below reporting thresholds.

Large trader reporting matters for: Institutional hedge funds or traders managing $10M+ in positions. Not typical prop traders.

CME Trading Hours and Restrictions

Regular trading hours (RTH):

• 9:30 AM – 4:15 PM ET (equity index futures)

Extended trading hours (ETH):

• 6:00 PM Sunday – 5:00 PM Friday ET (nearly 24 hours)

CME allows trading during both RTH and ETH. TakeProfitTrader may have internal rules about trading certain hours, but CME doesn't restrict you.

Market closures:

CME closes futures markets for:

• Christmas Day
• New Year's Day
• Major holidays (markets close early, e.g., 1:00 PM on day before Thanksgiving)

You cannot hold positions when market is closed. Broker will force-close positions before closure.

Order Type Restrictions (CME)

Allowed order types:

• Market orders
• Limit orders
• Stop orders
• Stop-limit orders

Not allowed (by most retail brokers, including TPT):

• Iceberg orders (hidden large orders)
• Fill-or-kill (FOK) in some products
• Market-on-close (MOC) for retail

Why restrictions exist: CME limits certain sophisticated order types to institutional participants to prevent retail traders from accidentally creating liquidity issues.

Price Banding and Circuit Breakers

CME rule: If a futures product moves too fast, trading pauses

Example:

ES drops 7% from previous close → 15-minute trading halt

What happens during halt:

• All open orders canceled
• No new orders accepted
• Market reopens after 15 minutes

Your PRO+ account during halt:

If you have open positions, they remain open but you can't add/exit until trading resumes.

How to prepare: Set stop-loss orders BEFORE halts. During extreme volatility (e.g., 2020 COVID crash), halts happened multiple times per day.

Margin Requirements (Set by CME, Enforced by Broker)

Initial margin: Amount required to open a position
Maintenance margin: Minimum balance to keep position open

Example (ES):

• Initial margin: $12,000 per contract
• Maintenance margin: $11,000 per contract

For PRO+ traders:

TakeProfitTrader sets position limits based on account size, which is typically more restrictive than CME's margin requirements.

You won't hit CME margin calls because TPT's position limits prevent you from over-leveraging.

Comparing CME Rules to TakeProfitTrader Rules

Key distinction: Violating TakeProfitTrader rules = account lockout, pay reset fee. Violating CME rules = fines, suspensions, potential criminal charges.

How to Stay Compliant with CME Rules

1. Never manipulate order flow

Don't place orders you intend to cancel. Only place orders you're willing to fill.

2. Don't coordinate trades across accounts to manipulate price

If you're running multiple PRO+ accounts, trade independently. Don't use them to create false liquidity.

3. Respect position limits

Even if TPT allows 60 micro contracts, if you're somehow aggregating positions across multiple firms and approaching CME limits, stop.

4. Don't trade on inside information

Futures markets are regulated. Trading on non-public information (e.g., advance knowledge of Fed decisions) is illegal.

5. Keep records

If CME or CFTC ever investigates, having a trading journal showing legitimate strategy helps prove you weren't manipulating markets.

What Happens If You Violate CME Rules

Investigation process:

1. CME's surveillance system flags unusual activity
2. CME Market Regulation investigates
3. Your broker (Rithmic/CQG) is contacted
4. TakeProfitTrader is contacted
5. You're contacted for explanation

Possible outcomes:

• Warning: First-time minor infraction
• Fine: $10,000-$500,000 depending on severity
• Suspension: Temporary ban from trading (30 days to 1 year)
• Permanent ban: Banned from all CME exchanges for life
• Criminal charges: For spoofing or insider trading

Does TPT protect you? No. If you violate CME rules, you're personally liable. TPT will terminate your account and cooperate with investigations.

Bottom Line

CME Group market rules for TakeProfitTrader PRO+ traders include exchange-level position limits (20,000 standard contracts or 200,000 micros for index futures—far above typical retail usage), mandatory Self-Match Prevention preventing wash trading, prohibited practices including spoofing (placing orders to cancel for price manipulation) and layering (false liquidity creation), and large trader reporting thresholds that trigger CFTC disclosure requirements above 500 ES contracts or equivalents.

These rules exist at the exchange level and apply to all PRO+ traders because orders route to real CME exchanges, with violations resulting in CME fines ($10,000-$500,000), trading suspensions, or permanent bans—far more severe than TakeProfitTrader's internal rule violations that only result in account lockouts requiring reset fees. Most retail prop traders never approach CME position limits or large trader reporting thresholds when running typical account sizes (5 accounts × 6 contracts = 30 total), but understanding prohibited practices like spoofing and wash trading prevents accidental violations that carry federal criminal penalties under Dodd-Frank.

The key distinction is TPT's internal rules (trailing drawdown, position sizes) affect only your prop account, while CME rules affect your ability to trade futures anywhere and can result in legal consequences extending far beyond prop trading.

Your Next Steps

👉 Learn About PRO+ Account Rules

👉 Understand SMP Guide

👉 Read About PRO+ Reset Process

‍

‍

‍