EAGLE MARKET MAKERS INC.
CBOT RULE VIOLATION:
Legacy Rule 443. (“POSITION LIMIT VIOLATIONS”)
The Market Regulation Department and the BCC shall have the authority to enforce the position limit rules of the Exchange. For purposes of this rule, any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations. Additionally, any person making a bid or offer that would, if accepted, cause such person to exceed the applicable position limit shall be in violation of this rule.
Rule 10102.E. POSITION LIMITS (Corn Futures) (In Relevant Part)
In accordance with Rule 559., Position Limits and Exemptions, no person shall own or control positions in excess of:
1. 600 contracts net long or net short in the spot month.
Pursuant to an offer of settlement in which Eagle Market Makers Inc. (“Eagle”) neither admitted nor denied the rule violations upon which the penalty is based, on August 16, 2012, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee found that Eagle traders made bids in the March-May Corn futures spread on trade date February 26, 2010, the first day the spot month position limits went into effect, that, when combined with their existing positions, exceeded the spot month position limit in Corn futures by 1,603 contracts. The order was cancelled within two seconds. Also, on trade date March 1, 2010, Eagle traders made bids in the March-July Corn futures spread that, when combined with their existing positions, exceeded the spot month position limit in Corn futures by 296 contracts. The order was cancelled within a second. After these incidents, Eagle took measures to ensure that spot month position limits are not violated. The Panel found that in so doing, Eagle violated legacy CBOT Rule 443.
In accordance with the settlement offer, the Panel fined Eagle $15,000.
August 20, 2012
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.