• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-16-0413-BC
      • Effective Date
      • 09 November 2017
    • FILE NO.:

      CME 16-0413-BC

      MEMBER:

      George Keefe III

      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 George Keefe III neither admitted nor denied the rule violation upon which the penalty is based, on November 7, 2017, a Panel of the Chicago Mercantile Exchange Business Conduct Committee found that on several occasions between June 2015, and March 2016, Keefe engaged in certain activity in which he entered and canceled layered orders in the Live Cattle futures contract market without the intent to trade. Additionally, during this same period of time, Keefe entered multiple layered orders on one side of the Live Cattle futures contract market without the intent to trade, and placed small resting orders on the other side of the market. Once the resting orders traded, Keefe canceled the layered orders. The Panel concluded that Keefe thereby violated CME Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Keefe to pay a fine in the amount of $25,000 and to serve a six-calendar 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, November 9, 2017, through December 21, 2017, inclusively.

      EFFECTIVE DATE:

      November 9, 2017