• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-16-0395-BC
      • Effective Date
      • 20 October 2017
    • FILE NO.:

      CME 16-0395-BC

      MEMBER:

      Zachary Abraham

      CME RULE VIOLATION:

      Rule 575. A. Disruptive Practices Prohibited (in part)

      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 Zachary Abraham neither admitted nor denied the rule violation upon which the penalty is based, on October 18, 2017, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that on multiple occasions between September 2014, and March 2016, Abraham engaged in a pattern of activity in which he entered large manual orders in the E-Mini NASDAQ and E-Mini S&P 500 futures contract markets without the intent to trade those orders. Specifically, the pattern of activity involved the entry of large orders on one side of the market and cancellation of those orders after resting iceberg orders on the opposite side of the market executed, in whole or part. The Panel concluded that Abraham thereby violated CME Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Abraham to pay a fine in the amount of $75,000 and to serve a three-week suspension from accessing any CME Group Inc. trading floor and 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 October 20, 2017, through November 9, 2017, inclusively.

      EFFECTIVE DATE:

      October 20, 2017