JONATHAN LEMAN (LMN)
CBOT RULE 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:
W. for a Member to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
Pursuant to an offer of settlement in which Jonathan Leman (“Leman”) 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, Leman was a CBOT member trader independently contracted with a proprietary trading firm. At various times during this period Leman allowed his non-member clerk to enter and execute trades on the CME Globex electronic trading platform using Leman’s unique Globex terminal operator ID (TAG 50). The Panel found that in so doing, Leman violated CBOT Rule 576.
Further, the Panel found that during this period Leman failed to diligently supervise his non-member clerk in conducting business relating to the Exchange, to wit: failed to monitor his clerk’s Globex order entry activity.
Specifically, that on March 7, 2008, without authorization, Leman’s clerk 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 Leman violated CBOT Rule 432.W.
In accordance with the settlement offer, the Panel fined Leman $20,000, and suspended his membership privileges, access to all CME Group trading floors, and direct access to all CME Group electronic trading and clearing platforms for 15 business days. The suspension shall run from March 25, 2011 through April 14, 2011, inclusive.
March 25, 2011
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