CME Group Penalizes PIMCO for Exceeding Crude Oil Futures Position Limits

The CME Group has announced a disciplinary action against Pacific Investment Management Company LLC (PIMCO), one of the worlds most prominent asset management firms, for exceeding the position limits on crude oil futures contracts. According to the notice dated May 9, 2025, the violation pertains to trading activity conducted on September 17, 2024, when PIMCO held 6,325 short futures-equivalent contracts in October 2024 Crude Oil futures, surpassing the CME-imposed position limit by 325 contracts, or approximately 5.42%.

The matter was reviewed by a Panel of the NYMEX Business Conduct Committee, which found PIMCO in violation of CME Rule 562, governing position limits designed to prevent market manipulation or excessive speculation. While PIMCO did not admit nor deny the violation or underlying facts, it did agree to settle the matter.

The firm promptly liquidated the excess position the following trading day, a move that generated $11,220 in profit. Under the terms of the settlement, PIMCO has been ordered to pay a $15,000 fine and to disgorge the full amount of profits derived from the over-limit position.

While not among the most egregious violations in terms of scale or intent, this incident highlights the ongoing importance of adhering strictly to CME position limit rules, even for large institutional players. The case serves as a reminder that all market participants—regardless of size or reputation—are expected to operate within the regulatory framework to maintain fair and orderly markets.