MARTIN D. MURPHY
LEGACY CBOT REG. VIOLATION:
9B.13(c) PRE-EXECUTION COMMUNICATIONS PROHIBITED
(i) Pre-execution communications are communications between two market participants for the purpose of discerning interest in the execution of a transaction prior to the entry of an order on the e-cbot platform.
(ii) Pre-execution communications and transactions arising from such communications are prohibited in all products during all hours except as otherwise provided by Regulation 331.05 “Block Trade Transactions”.
Pursuant to an offer of settlement in which Martin Murphy neither admitted nor denied the findings, on March 8, 2010, a Panel of the CBOT Business Conduct Committee found that on four dates in August and September 2007, Murphy executed a series of transactions in the Soybean futures market on e-cbot for the purpose of freshening a long Soybean futures position. The Panel found that Murphy engaged in pre-execution communications with another market participant for the purpose of discerning interest in the execution of his transactions. The Panel found that in so doing, Murphy violated legacy CBOT Regulation 9B.13.
In accordance with the settlement offer, the Panel fined Murphy $15,000 and suspended his membership privileges, access to any CME Group trading floors and direct access to any CME Group electronic trading or clearing platform for 10 business days, beginning March 8, 2010, through March 19, 2010, inclusive.
March 10, 2010
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