CBOT RULES 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 Ronald Weissenhofer neither admitted nor denied the rule violations upon which the penalty is based, on February 23, 2011. A Panel of the CBOT Business Conduct Committee found that Weissenhofer allowed individuals with discretionary trading authority over two accounts registered exclusively to him to enter and execute trades on the CME Globex electronic trading platform using his unique Globex terminal operator ID at various times from August 2008 through March 2009. The Panel found that in so doing, Weissenhofer violated CBOT Rule 576.
Further, the Panel found that Weissenhofer engaged in and permitted individuals with discretionary trading authority over two accounts registered exclusively to him to engage in the practice of surreptitiously accessing and monitoring privately owned bridge lines belonging to an unaffiliated CBOT member firm without its express or implied consent or knowledge while trading these accounts at various times from August 2008 through March 2009. The Panel found that in so doing Weissenhofer violated CBOT Rules 432.B, 432.T, and 432.Q
In accordance with the settlement offer, the Panel fined Weissenhofer $75,000 and barred him from membership privileges, access to any CME Group Inc. trading floors, and direct access to any CME Group Inc. electronic trading or clearing platform for 45 business days, beginning February 25, 2011 and continuing through April 29, 2011, inclusive.
February 25, 2011
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