Michael Christopher Forster (MHF)
CBOT REGULATION VIOLATIONS:
(Legacy) Regulation 9B.14 Good Faith Bids and Offers
A member or Registered User shall not knowingly enter, or cause to be entered, bids or offers into the e-cbot system other than in good faith for the purpose of executing bona fide transactions.
(Legacy) Regulation 350.05 Trading Practices
The following acts are prohibited and shall constitute acts detrimental to the welfare of the Exchange (except as permitted under Regulation 331.05). This Regulation shall apply to all persons subject to the jurisdiction of the Exchange, and, unless otherwise specified, shall apply to both the open auction market and the e-cbot market.
(f) No person shall make any purchase or sale which has been pre arranged, except as permitted under Regulations 331.05, 331.06 and 331.08.
Pursuant to an offer of settlement in which Michael Christopher Forster neither admitted nor denied the rule violations upon which the penalty is based, on April 19, 2011, a Panel of the CBOT Business Conduct Committee found that on several trade dates in 2007, Forster executed 10 prearranged round-turn transaction sets on the e-cbot electronic trading platform in the spot month Soybean, Soybean Meal, and Corn futures contracts for the purposes of freshening long position dates. The Panel also found that on several trade dates in 2007 and 2008, Forster executed six transactions on the e-cbot electronic trading platform in spot month Soybean Meal and Corn futures contracts where he directly traded opposite his own account for the purpose of freshening long position dates.
In accordance with the settlement offer, the Panel ordered Forster to pay a fine in the amount of $5,000.00 and barred Forster from access to all CME Group trading floors, and barred him from direct and indirect access to any electronic trading and clearing platforms owned or controlled by CME Group, including the CME Globex electronic trading platform, for a period of 60 days, beginning on the effective date below and continuing through and including June 27, 2011.
April 29, 2011
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