David Himel (DH)
CBOT RULE VIOLATIONS:
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.
539.A. PREARRANGED, PRE-NEGOTIATED AND NONCOMPETITIVE TRADES PROHIBITED
No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction . . .
Pursuant to an offer of settlement in which David Himel (“Himel”) neither admitted nor denied the findings and conclusions herein, on June 22, 2011, a Panel of the CBOT Business Conduct Committee (the “Panel”) made the following findings: That on more than one occasion from December 2, 2008 through December 12, 2008, Himel acted upon nonpublic order information to noncompetitively trade with another member in the Soybean futures pit.
The Panel found that in so doing, Himel violated CBOT Rules 532 (“Disclosing Orders Prohibited”) and 539.A. (Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited).
In accordance with the settlement offer, the Panel fined Himel $10,000 and ordered him to serve a 25 business day suspension of his 1) membership privileges; 2) access to all CME Group Inc. trading floors, and 3) direct access to all CME Group Inc. electronic trading and clearing platforms. The suspension will run from June 24, 2011 through July 29, 2011, inclusive.
June 24, 2011
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