Thomas Stack (THS)
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.
532. DISCLOSING ORDERS PROHIBITED
No person shall disclose another person’s order to buy or sell except to a designated Exchange official or the CFTC, and no person shall solicit or induce another person to disclose order information. An order for pit execution is not considered public until it has been bid or offered by open outcry. No person shall take action or direct another to take action based on non-public order information, however acquired. The mere statement of opinions or indications of the price at which a market may open or resume trading does not constitute a violation of this rule.
Pursuant to an offer of settlement in which Thomas Stack (THS) neither admitted nor denied any rule violations upon which the penalty is based, on August 25, 2011, a panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee found that on one or more occasions in June 2008, Thomas Stack executed trades with other members in the Dow Jones Industrial Average Index futures pit, in a manner that was not open and competitive. The panel found that in doing so, Thomas Stack violated CBOT Rules 521 and 532.
In accordance with the offer of settlement, the Panel fined Thomas Stack $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. Thomas Stack’s suspension will run from August 29, 2011 through September 27, 2011, inclusive.
August 29, 2011
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