HENNING & CAREY TRADING CO.
432. General Offenses (In Part)
It shall be an offense:
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W. for a Member to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange;
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Pursuant to an offer of settlement in which Henning & Carey Trading Co. neither admitted nor denied the findings, on September 23, 2010, a Panel of the CBOT Business Conduct Committee found that Henning & Carey Trading Co., a CBOT member firm and registered commodity trading advisor, had an inadequate compliance program and thereby failed to diligently supervise the Globex order entry activity of one of its non-member agents. That failure resulted in inaccurate user IDs and account numbers being associated with orders entered into the Globex platform, as well as prohibited wash sales.
The Panel found that in doing so Henning & Carey Trading Co. violated CBOT Rule 432.W.
In accordance with the settlement offer, the Panel fined Henning & Carey Trading Co. $35,000 and ordered the firm to develop and implement an adequate compliance program which includes training, education and supervision functions sufficient to ensure compliance with Exchange rules, including those pertaining to recordkeeping, trade allocation, Globex user IDs and wash sales. The Panel directed Henning & Carey Trading Co. to provide written evidence to the CME Group Market Regulation Department of its program and implementation within three months of the effective date listed below.
September 27, 2010
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