CAPULA INVESTMENT MANAGEMENT, LLP
504.00 Acts Detrimental to Welfare of the Exchange
It shall be an offense against the Exchange to engage in any act which may be detrimental to the interest or welfare of the Exchange.
Pursuant to an offer of settlement in which Capula Investment Management, LLP neither admitted nor denied the findings, on September 23, 2010, a Panel of the CBOT Business Conduct Committee found that Capula voluntarily submitted itself to the jurisdiction of the CBOT BCC for the purpose of this settlement and that during an 11-day period during September 2006 Capula entered orders into the e-cbot system for an account it owned or controlled which matched directly opposite other pending Capula orders on the e-cbot system for another account that Capula owned or controlled. In doing so the Panel found that Capula Investment Management, LLP violated legacy CBOT Rule 504.00.
In accordance with the settlement offer, the Panel fined Capula $25,000. In determining the fine amount the Panel took into consideration that Capula has not been found to have engaged in similar transactions since September 2006.
September 27, 2010
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