• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT-16-0463-BC
      • Effective Date
      • 25 May 2018
    • FILE NO.:

      CBOT 16-0463-BC

      NON-MEMBER:

      Gust Michael Saltouros

      CBOT RULE VIOLATIONS:

      Rule 575 (“Disruptive Practices Prohibited”)

      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 Gust Michael Saltouros (“Saltouros”) neither admitted nor denied the rule violations upon which the penalty is based, on May 23 2018, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on one or more occasions between January 2015 and February 2016, Saltouros entered orders for various U.S. Treasury futures on the Globex electronic trading platform during the pre-opening period that were not entered in good faith for the purpose of executing bona fide transactions, but for the purpose of discerning the depth of the order book at different price levels. The entry and cancellation of these orders caused fluctuations in the publicly displayed Indicative Opening Price. The Panel thus concluded that Saltouros violated CBOT Rule 575.A.

      PENALTY:

      In accordance with the settlement offer and after taking Saltouros’ financial condition into consideration when it levied the sanction, the Panel ordered Saltouros to have his access to all CME Group trading floors and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group suspended for a period of one month. The suspension shall run from May 25, 2018, through June 25, 2018, inclusively.

      EFFECTIVE DATE:

      May 25, 2018