CBOT RULE VIOLATIONS:
534. WASH TRADES PROHIBITED
No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent or negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.
539. PREARRANGED, PRE-NEGOTIATED AND NON-COMPETITIVE TRADES PROHIBITED
A. No person shall prearrange or pre-negotiate any purchase or sale or non-competitively execute any transaction.
Pursuant to an offer of settlement in which Ingmar Mattus neither admitted nor denied the findings on January 20, 2010, a panel of the CBOT Business Conduct Committee found that Ingmar Mattus voluntarily submitted himself to the jurisdiction of the CBOT Business Conduct Committee and that in April 2008, he engaged in a prohibited wash trade between his personal account and his corporate account. Additionally, he engaged in a series of prearranged trades with another nonmember in deep out of the money Wheat options and in deep out of the money Soybean options. The transactions were designed to move money from one account to another. The Panel found that in so doing, Ingmar Mattus violated CBOT Rules 534 and 539.A.
The Panel fined Ingmar Mattus $30,000 and suspended his direct access to any trading floor or electronic trading or clearing platform owned or operated by CME Group, including CME Globex® for 20 business days.
The suspension shall run from January 25, 2010 through February 22, 2010 inclusive.
January 25, 2010
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