CBOT RULE VIOLATIONS:
Rule 432. General Offenses (in part)
It shall be an offense:
B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;
Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;
T. to engage in dishonorable or uncommercial conduct.
Pursuant to an offer of settlement in which Edward Buonopane (“Buonopane”) neither admitted nor denied the rule violations upon which the penalty is based, on August 25, 2016, a Panel of the CME Business Conduct Committee (“BCC” or “Panel”) found that it had jurisdiction over Buonopane pursuant to CME Rules 402 and 418. The Panel also found that from December 2012 through February 2013, Buonopane engaged in a pattern of activity in the Euro FX and Japanese Yen futures markets wherein he entered larger-sized orders on one side of the market and smaller-sized orders on the other, which created the appearance of an imbalance in buy/sell pressure. Once the small orders began trading, Buonopane cancelled the large orders resting on the other side of the order book. Buonopane’s purpose in creating this imbalance included encouraging market participants to trade with his smaller-sized orders and in many cases his orders had that effect. The Panel concluded that Buonopane thereby violated CME Rules 432.B.2., 432.Q., and 432.T.
In accordance with the settlement offer, the Panel ordered Buonopane to pay a fine to the Exchange in the amount of $90,000 and serve a two week suspension of access to any CME Group Inc. trading floor and of direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group, Inc., including CME Globex.
August 29, 2016
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