• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT-17-0679-BC
      • Effective Date
      • 14 December 2017
    • FILE NO.:

      CBOT 17-0679-BC

      NON-MEMBER:

      Michiel ten Hacken

      CBOT RULE VIOLATION:

      Rule 575.A Disruptive Practices Prohibited

      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 Mr. ten Hacken neither admitted nor denied the rule violation upon which the penalty is based, on December 12, 2017, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on multiple occasions between January 3, 2016, and January 27, 2017, Mr. ten Hacken entered and canceled orders in the Oats and Rice futures markets on the Globex electronic trading platform during the pre-opening period that were not entered for the purpose of executing bona fide transactions, but for the purpose of identifying the depth of the order book. The entry and cancellation of these orders caused fluctuations in the publicly displayed Indicative Opening Price. The Panel concluded that this activity violated CBOT Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Mr. ten Hacken to pay a fine of $20,000. The Panel also suspended Mr. ten Hacken from access to any CME Group trading floor and direct and indirect access to all electronic trading and clearing platforms owned or operated by CME Group for 15 business days, beginning on the effective date below and continuing through and including January 5, 2018.

      EFFECTIVE DATE:

      December 14, 2017