CME reports users unable to create new UDS in CMED; issue under investigation
TL;DR
CME Group is investigating a technical issue preventing users from creating new User Defined Spreads (UDS) in the CMED system, disrupting traders' ability to customize multi-legged instruments. The outage, ongoing since early February 2026, has no resolution timeline yet, and affected users are advised to monitor updates or use alternatives.
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CME reports users unable to create new UDS in CMED; issue under investigation
CME Group Investigates Technical Issue Preventing UDS Creation in CMED
February 24, 2026
CME Group has reported that users are currently unable to create new User Defined Spreads (UDS) in the CMED (CME Data) system, a functionality critical for customizing multi-legged trading instruments on the CME Globex platform. The issue, first identified in early February 2026, has disrupted workflows for traders relying on UDS to construct complex derivatives strategies, including covered spreads and inter-commodity combinations according to CME documentation.
UDS instruments, which allow clients to define spreads using parameters such as leg ratios and deltas, are subject to strict rules and technical constraints. For example, covered UDS—designed to be delta-neutral—must combine options with up to 39 futures contracts, while recursive UDS (spreads containing other UDS) are limited to one level of nesting as specified in UDS guidelines. The current outage appears to stem from a technical malfunction in the CMED system's ability to process UDS creation requests, though CME has not yet disclosed the root cause.
The exchange has confirmed it is investigating the issue and working to resolve it, but no timeline has been provided. In a statement, CME emphasized its commitment to maintaining market integrity and ensuring system reliability. "We are aware of the disruption and are prioritizing a swift resolution," the statement read.
This incident follows prior disciplinary actions related to UDS misuse. In 2021, individual trader Kevin Howard was fined $50,000 and suspended for exploiting UDS to manipulate allocations in crude oil options, while in 2023, Edgehog LLC was penalized for similar tactics in agricultural commodities, resulting in $151,962 in disgorged profits according to CME disciplinary notices(https://www.cmegroup.com/notices/disciplinary/2023/03/CBOT-21-1485-BC-1-EDGEHOG-LLC.html). These cases underscore the regulatory scrutiny surrounding UDS, which must be used in good faith under CME rules.
Traders affected by the outage are advised to monitor CME's official notices for updates. In the interim, workarounds may include using alternative instruments or delaying UDS-dependent strategies until the issue is resolved.
As the investigation unfolds, market participants will be watching for clarity on whether the outage is isolated or indicative of broader system vulnerabilities. For now, CME's focus remains on restoring full functionality while reinforcing safeguards against potential abuses.
(https://www.cmegroup.com/notices/disciplinary/2021/05/NYMEX-19-1201-BC-KEVIN-HOWARD.html): CME Group disciplinary notice, 2021
(https://www.cmegroup.com/notices/disciplinary/2023/03/CBOT-21-1485-BC-1-EDGEHOG-LLC.html): CME Group disciplinary notice, 2023
(https://cmegroupclientsite.atlassian.net/wiki/spaces/EPICSANDBOX/pages/457226169/User+Defined+Spread+-+UDS): CME UDS documentation, Confluence (2026)
