WILLIAM MALEK (WBF)
(LEGACY) CBOT RULE AND REGULATION:
CBOT Rule 332.00 (“Transactions Must Be Executed in the Open Market”)
All futures or options transactions executed by any member of the Exchange, on the Exchange Floor, must be executed openly and competitively by open auction during open auction trading hours….
CBOT Regulation 350.05(f) (“Trading Practices”)
(f) No person shall make any purchase or sale which has been pre-arranged….
After a full evidentiary hearing on the merits, on May 26, 2010, a Panel of the CBOT Business Conduct Committee found that William Malek on August 29, 2006, while in the 5-year U.S. Treasury Note futures pit, indirectly crossed a customer order through another member by a noncompetitive trade and noncompetitively executed and prearranged a trade with another member. The Panel found that in so doing Malek violated legacy CBOT Rule 332.00 and violated legacy CBOT Regulation 350.05(f).
In accordance with the Panel’s findings, it fined Malek $20,000 and suspended his membership privileges, direct access to any CME Group trading floor, electronic trading platform or clearing platform owned or operated by CME Group for 15 business days.
Malek’s suspension shall run from July 12, 2010, through July 30, 2010, inclusive.
July 12, 2010
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