Let $r(m)$ denote the residue class $r+m\mathbb{Z}$, where $0 \leq r < m$. Given disjoint residue classes $r_1(m_1)$ and $r_2(m_2)$, let the class transposition $\tau_{r_1(m_1),r_2(m_2)}$ be the permutation of $\mathbb{Z}$ which interchanges $r_1+km_1$ and $r_2+km_2$ for every $k \in \mathbb{Z}$ and which fixes everything else.
Question: Does the group ${\rm CT}(\mathbb{Z})$ generated by the set of all class transpositions have finitely generated infinite periodic subgroups?
Remark: By means of computation one can find "almost-examples" of such groups. For example let $G := \langle a, b, c, d, e \rangle$, where $a = \tau_{0(4),2(4)}$, $b = \tau_{0(5),3(5)}$, $c = \tau_{1(3),5(6)}$, $d = \tau_{1(6),3(6)}$ and $e = \tau_{2(6),4(6)}$. Then $G$ is infinite, but the subgroups generated by any $4$ of the generators are finite, and also all products of at most $6$ generators have finite order. Though unfortunately there are products of $7$ generators which happen to have infinite order (example: $(ab)^2ced$), such that $G$ is not periodic.
Added on May 15, 2018: This question has appeared as Problem 19.46 in:
Kourovka Notebook: Unsolved Problems in Group Theory. Editors V. D. Mazurov, E. I. Khukhro. 19th Edition, Novosibirsk 2018.