ROGER PHILLIPS (RPS)
CBOT RULE VIOLATIONS:
432. GENERAL OFFENSES
It shall be an offense:
B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;
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;
T. to engage in dishonorable or uncommercial conduct;
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.
Pursuant to an offer of settlement in which Roger Phillips neither admitted nor denied the rule violations upon which the penalty is based, on May 12, 2011 a Panel of the CBOT Business Conduct Committee found that Phillips placed buy and sell orders on the Globex platform using a user ID other than his own at various times from August 2008 through March 2009. The Panel found that in so doing, Phillips violated CBOT Rule 576.
Further, the Panel found that Phillips engaged in the practice of accessing and monitoring privately owned bridge lines belonging to an unaffiliated CBOT member firm without its express or implied consent or knowledge while trading personal accounts for which he had discretionary trading authority over at various times from August 2008 through March 2009. The Panel found that in so doing Phillips violated CBOT Rules 432.B, 432.T, and 432.Q (General Offenses).
In accordance with the settlement offer, the Panel ordered Phillips to pay a fine of $15,000 and serve a 6 month calendar 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, beginning June 1, 2011 and continuing through November 30, 2011, inclusive.
June 1, 2011
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