Trading around news events is allowed, as long as it is based on a clear directional idea and proper risk management.
The following is not allowed:
Opening opposite or multiple positions just before major news events to “catch” a move in any direction
Using straddling strategies designed to profit from volatility spikes rather than a market view
Trading purely to benefit from spread widening, slippage, or rapid price jumps
In short: trading the news with a strategy is allowed, trading the reaction without a clear direction is not.
If such activity is detected, it may lead to account review, payout reduction, strikes, or account termination.