Edward Daly (EDI)
CBOT RULE VIOLATIONS:
521. PIT TRADING
Bidding and offering practices must at all times be conducive to the competitive execution of transactions. All pit transactions, including spread and combination transactions, shall be made openly and competitively in the pit designated for the trading of the particular transaction.
576. IDENTIFICATION OF GLOBEX TERMINAL OPERATORS
Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.
Pursuant to an offer of settlement in which Edward Daly (EDI) neither admitted nor denied any rule violations upon which the penalty is based, on June 16, 2011, a panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee found that on one or more occasions in June 2008, Edward Daly executed trades with other members in the Dow Jones Industrial Average Index futures pit who were part of the same brokerage group as him, in a manner that was not open and competitive; and on some of those dates, Edward Daly used another member’s registered Tag 50 ID to place trades on the CME Globex® electronic trading platform. The panel found that in doing so, Edward Daly violated CBOT Rules 521 and 576.
In accordance with the offer of settlement, the Panel fined Edward Daly $10,000 and suspended his membership privileges, access to any trading floor and direct access to any electronic trading or clearing platform owned or operated by CME Group, including CME Globex® for 30 calendar days. Edward Daly’s suspension will run from June 20, 2011 through July 20, 2011, inclusive.
June 20, 2011
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