CBOT RULES VIOLATIONS:
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.
432. General Offenses
It shall be an offense:
Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange.
FINDINGS: Pursuant to an offer of settlement in which Brent David (“David”) neither admitted nor denied the findings, on March 23, 2011, a Panel of the CBOT Business Conduct Committee (the “Panel”) made the following findings: from January 2007 through March 7, 2008, David was a non-member clerk working under the direction and guidance of two member traders at a proprietary trading firm. At various times during this period David entered buy and sell orders over the CME Globex electronic trading platform without authorization to do so from the proprietary trading firm and without using his own unique Globex terminal operator identification (TAG 50).
On March 7, 2008, without authorization, David knowingly purchased 495 June 2007 30-Year U.S. Treasury Bond futures through the CME Globex electronic trading platform which resulted in a loss of $248,828.
The Panel found that in so doing David violated CBOT Rules 576 and 432.Q
In accordance with the settlement offer, the Panel fined David $50,000, and David is precluded and barred for a ten-year period from 1) applying for membership at any exchange owned, controlled, or operated by CME Group Inc., and 2) directly or indirectly accessing, placing orders, or executing trades on any trading or clearing platform owned, controlled, or operated by CME Group Inc., including, but not limited to, the CME Globex electronic trading platform. David’s bar will begin March 25, 2011 and continue through March 24, 2021.
March 25, 2011
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