FRED K. BOWERS (FKB)
CBOT RULE VIOLATIONS:
(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 a person to exceed the applicable position limits shall be in violation of this rule.
Pursuant to an offer of settlement in which Fred Bowers 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 on August 31, 2010 Bowers failed to adhere to the spot month speculative position limits for Wheat and Corn futures by entering and immediately canceling offers in Wheat on 14 occasions, and bids in Corn on six occasions and if those offers or bids were accepted, they would have caused Bowers to exceed the applicable position limits.
In accordance with the settlement offer, the Panel fined Bowers $15,000.
February 25, 2011
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