• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-15-0126-BC
      • Effective Date
      • 11 December 2017
    • FILE NO.:

      CME 15-0126-BC

      MEMBER:

      Mark Palmer

      CME 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 dishonorable or uncommercial conduct;

      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 Mark Palmer (“Palmer”) neither admitted nor denied the rule violations upon which the penalty is based, on December 7, 2017, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on multiple occasions between July 1, 2014, and September 4, 2015, Palmer entered bids, offers, and modifications on the Globex electronic trading platform during the pre-open period in CME Lean Hog futures contracts at prices through the existing bid/offer, 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 Palmer thereby violated CME Rules 432.Q. and 432.T. The Panel also found that Palmer violated CME Rule 575.A. with respect to his conduct from September 15, 2014, through September 4, 2015.

      PENALTY:

      In accordance with the settlement offer, and after taking Palmer’s financial condition into consideration when it levied the sanction, the Panel ordered Palmer to pay a fine to the Exchange in the amount of $12,500. The Panel also suspended Palmer’s access to all CME Group trading floors and direct access to all electronic trading and clearing platforms owned or controlled by CME Group. The suspension shall begin on December 11, 2017 and continue for a period of two months after the fine is paid in full.

      EFFECTIVE DATE:

      December 11, 2017