MARTIN ROGERS (MRX)
CBOT RULE VIOLATIONS:
RULE 432 - GENERAL OFFENSES
It shall be an offense:
D. to create or report a false or fictitious 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.
Pursuant to an offer of settlement in which Martin Rogers (“Rogers”) neither admitted nor denied the findings and conclusions herein, on November 17, 2011, a Panel of the CBOT Business Conduct Committee (the “Panel”) made the following findings: That during the period of January through March 2009, Rogers, a member of the CBOT, and a floor trader in the CBOT Dow Jones Industrial Average Index ($10 Multiple) (“Dow”) futures pit, knowingly recorded fictitious futures trades on his personal trading cards and submitted the trading cards to his clearing member firm on nine (9) occasions. The trading cards he submitted to his clearing firm appeared to be bona-fide trades that occurred in the Dow pit, but were not legitimately executed opposite another trader. Six (6) of these trades were reported to the Exchange for clearing, but resulted in out-trades and never cleared. As a result of submitting these trading cards, Rogers’ actual futures position was not apparent to his clearing firm on all nine (9) occasions and margin calls between $1,599 and $76,000 were avoided on five (5) occasions, thus placing Rogers’ clearing firm at risk.
The Panel found that in so doing, Rogers violated CBOT Rule 432.D. (to create or report a false of fictitious trade) and Rule 432.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).
In accordance with the settlement offer, the Panel fined Rogers $30,000 and ordered him to serve a 50 business day suspension of his 1) membership privileges; 2) access to all CME Group Inc. trading floors, and 3) direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. The suspension will run from December 16, 2011, through and including February 29, 2012.
December 16, 2011
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