• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT-14-0008-BC
      • Effective Date
      • 20 July 2017
    • FILE NO.:

      CBOT 14-0008-BC

      NON-MEMBER:

      Yakun Popli

      CBOT RULE VIOLATIONS:

      432. General Offenses (in part)

      It shall be an offense:

      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… 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 Yakun Popli (“Popli”) neither admitted nor denied the rule violations upon which the penalty is based, on July 18, 2017, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on one or more occasions between January 30, 2014, and October 28, 2014, Popli entered orders in the CBOT 10-Year U.S. Treasury Note Futures (“T-Note”) on the Globex electronic trading platform during the pre-opening period, which were not made in good faith for the purpose of executing bona fide transactions. The entry and cancelation of these orders caused fluctuations in the publicly displayed Indicative Opening Price. The Panel concluded that Popli thereby violated CBOT Rules 432.Q. and 432.T. with respect to his conduct from January 30, 2014 to September 14, 2014, and Rule 575 A. for his conduct from September 15, 2014, to October 28, 2014.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Popli to pay a fine to the Exchange in the amount of $15,000 and have his access to all CME Group trading floors and direct access to all electronic trading and clearing platforms owned or controlled by CME Group suspended for 10 business days, beginning on the effective date below and continuing through and including August 2, 2017.

      EFFECTIVE DATE:

      July 20, 2017