CBOT RULE & REG. VIOLATIONS:
Rule 539. Prearranged, Pre-Negotiated and Noncompetitive Trades
A. General Prohibition
No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction . . .
(legacy) Regulation 9B.14 Good Faith Bids & 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.
Pursuant to an offer of settlement in which Craig Sulak neither admitted nor denied the rule violations upon which the penalty is based, on October 6, 2010, a Panel of the CBOT Business Conduct Committee found that on four trade dates in December 2007, Sulak prearranged the execution of eleven round-turn transaction sets on the e-cbot electronic trading platform in the spot month Soybean Meal and Corn futures contracts. The Panel also found that on several trade dates between June and September 2007, Sulak directly traded opposite his own account in eight transactions on the e-cbot electronic trading platform in spot month Soybean and Soybean Meal futures contracts. In so doing, the Panel found that Sulak violated CBOT Rule 539. and legacy CBOT Regulation 9B.14.
In accordance with the settlement offer and inconsideration of Sulak’s cooperation during the course of the investigation, the Panel fined Sulak $10,000 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 15 business days, beginning October 7, 2010, and continuing through October 27, 2010, inclusive.
October 8, 2010
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