• NOTICE OF DISCIPLINARY NOTICE

      • #
      • CBOT-17-0707-BC
      • Effective Date
      • 29 September 2017
    • FILE NO.:

      CBOT 17-0707-BC

      MEMBER:

      Edward J. Schwartz

      CBOT RULE VIOLATION:

      Rule 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, including positions established intraday.

      FINDINGS:

      Pursuant to an offer of settlement in which Mr. Schwartz neither admitted nor denied the rule violation upon which the penalty is based, on September 27, 2017, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on May 2, 2017, Mr. Schwartz held an intraday position of 603 contracts long in May 2017 Corn futures, which exceeded the spot month position limit of 600 contracts by three contracts, or .5% over the spot month position limit in effect on that date. Mr. Schwartz did not profit from liquidating this overage. The Panel concluded that this activity violated CBOT Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Mr. Schwartz to pay a fine of $5,000.

      EFFECTIVE DATE:

      September 29, 2017