• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT 16-0574-BC
      • Effective Date
      • 08 June 2017
    • MEMBER:

      E. Davison Massey

      CBOT VIOLATION:

      562. Position Limit Violations (in part)

      Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

      FINDINGS:

      Pursuant to an offer of settlement in which E. Davison Massey (“Massey”) neither admitted nor denied the rule violation upon which the penalty is based, on June 6, 2017, a Panel of the CBOT Business Conduct Committee (“BCC” or “Panel”) found that on trade date November 29, 2016, Massey’s account held an end of day position of 900 contracts short in December 2016 Soybean Oil futures, which exceeded the spot month speculative position limit of 540 contracts by 360 contracts, or approximately 66%. The next morning, after being notified of the overage, Massey liquidated the overage to come into compliance, suffering a loss in the process. The Panel found that Massey thereby violated CBOT Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Massey to pay a fine in the amount of $30,000 and barred Massey from accessing any CME Group Inc. trading floor, and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. for ten days, beginning on the effective date below and continuing through and including June 17, 2017.

      EFFECTIVE DATE:

      June 8, 2017