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CME Rebuffs Traders Seeking to Recoup Losses From Outage

Julian Hast, Naureen S Malik
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⚡ Quantum Brief
Chicago Mercantile Exchange rejected compensation claims from at least two natural gas traders who suffered losses during a January 27 technical outage that disrupted settlement price calculations. The malfunction occurred during a critical trading window for futures contracts tied to the $150 billion U.S. natural gas market, affecting price-setting mechanisms. Traders sought reimbursement for financial losses incurred when the glitch prevented normal trading operations, but CME denied liability in a decision issued last week. Disputes may proceed to arbitration, as the affected parties remain unidentified but are reportedly pursuing further legal action over the rejected claims. The incident highlights vulnerabilities in electronic trading systems during high-stakes settlement periods for major commodity markets.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000CME Group headquarters in Chicago.The Chicago Mercantile Exchange has rejected demands for compensation from at least two natural gas investors who lost money when a technical glitch disrupted trading during the key period when settlement prices are calculated.The CME last week denied the traders’ claims related to the Jan. 27 malfunction that impacted the settlement price for futures contracts that underpin the $150 billion-a-year US gas market, according to people who asked not to be identified discussing disputes that may be subject to arbitration.

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