• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-17-0722-BC
      • Effective Date
      • 25 May 2018
    • FILE NO.:

      CME 17-0722-BC

      MEMBER:

      David Campanile

      CME RULE VIOLATION:

      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 an 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 David Campanile (“Campanile”) neither admitted nor denied the rule violations upon which the penalty is based, on May 23, 2018, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“BCC” or “Panel”) found that on multiple occasions between October 24, 2016, and June 16, 2017, Campanile entered and canceled orders in the Lean Hogs futures market 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 thus concluded that Campanile thereby violated CME Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Campanile to pay a fine of $10,000. The Panel also suspended Campanile 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 20 business days, beginning on the effective date below and continuing through and including June 22, 2018.

      EFFECTIVE DATE:

      May 25, 2018