• NOTICE OF DISCIPLINARY ACTION

      • #
      • 11-CH-1101
      • Effective Date
      • 04 May 2011
    • 11-CH-1101

      EXCHANGE DISCIPLINARY ACTION

      CLEARING MEMBER: Dorman Trading L.L.C.

      CBOT RULE VIOLATION: 930.D. Acceptance of Orders

      Clearing members may accept orders for an account provided sufficient performance bond is on deposit in the account or is forthcoming within a reasonable time.

      For an account which has been subject to calls for performance bond for an unreasonable time, clearing members may only accept orders that reduce the performance bond requirements of existing positions in the account.

      Clearing members may not accept orders for an account that has been in debit an unreasonable time.

      FINDINGS: Pursuant to an offer of settlement in which Dorman Trading L.L.C. neither admitted nor denied the violations, the Clearing House Risk Committee found that Dorman Trading L.L.C. violated the above rule.

      PENALTY: In accordance with the settlement offer, the Committee imposed a $20,000 fine, effective May 4, 2011, which will be waived if no further similar violations are found during the course of CME Group’s 2011 audit of Dorman Trading L.L.C. and if Exchange staff determines that Dorman Trading L.L.C resolved the issue brought before the Clearing House Risk Committee. After a subsequent examination, the Clearing House Risk Comittee waived $20,000 at the January 18, 2012 meeting.

      EFFECTIVE DATE: January 18, 2012