• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT 14-9994-BC
      • Effective Date
      • 08 June 2017
    • MEMBER:

      Carter Ohrt

      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.

      Rule 575. Disruptive Practices Prohibited (in part)

      All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

      A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution;

      FINDINGS:

      Pursuant to an offer of settlement in which Carter Ohrt neither admitted nor denied the rule violations upon which the penalty is based, on June 6, 2017, a Panel of the Chicago Board of Trade Business Conduct Committee found that on certain days between March and October 2014, Ohrt entered orders in the Wheat, Corn, Soybean, KC Wheat, and E-mini Dow futures contract markets without the intent to trade those orders. The Panel specifically found that Ohrt’s trading strategy involved placing multiple larger orders on one side of the market opposite a single small order on the other side, and canceling the larger orders after the smaller quantity traded. The Panel found that the effect of this strategy was to induce other market participants to trade opposite the smaller resting orders.

      The Panel concluded that Ohrt thereby violated CBOT Rules 432.B.2, 432.Q and 432.T with respect to his conduct from March 2014 to September 14, 2014, and Rule 575.A for his conduct from September 15, 2014 to October 2014.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Ohrt to pay a fine in the amount of $60,000, pay disgorgement of $32,299.57, and to serve a 120-day suspension from accessing any CME Group Inc. trading floor and all direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from June 8, 2017 to October 6, 2017.

      EFFECTIVE DATE:

      June 8, 2017