CBOT RULE VIOLATIONS:
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.
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 Remco Schipper neither admitted nor denied any rule violations upon which the penalty is based, on August 25, 2011, a panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee found that on one or more occasions in November and December 2008, Remco Schipper executed a series of trades in the Oats and Rough Rice futures markets noncompetitively and in a manner designed to move $17,342 from one account to another. In addition, he used another person’s registered Tag 50 ID to place trades on the CME Globex® electronic trading platform. The panel found that in doing so, Remco Schipper violated CBOT Rules 539.A and 576.
In accordance with the offer of settlement, the Panel fined Remco Schipper $15,000 and suspended his direct access to any electronic trading or clearing platform owned or operated by CME Group, including CME Globex® for 40 days. Remco Schipper’s suspension will run from August 29, 2011 through October 8, 2011, inclusive.
August 29, 2011
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