CBOT RULE VIOLATION:
Rule 521 (“Requirements for Open Outcry Trades”) (in part)
In open outcry trading, bidding and offering practices must at all times be conducive to the competitive execution of transactions. All open outcry transactions, including spread and combination transactions, shall be made openly and competitively in the pit designated for the trading of the particular transaction. No bid or offer shall be specified for acceptance by a particular trader.
Rule 539.A. (“Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited”) (in part)
No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.
Pursuant to an offer of settlement in which Roger McGuire (“McGuire”) neither admitted nor denied the rule violations upon which the penalty is based, on October 20, 2015, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that it had jurisdiction over McGuire pursuant to Rules 400 and 402 as the conduct occurred while McGuire was a CBOT member, and that on one or more occasions in November 2010 and from June 2011 to September 2011, McGuire engaged in trades as a broker in the Corn Futures pit that were not competitively executed by open outcry. The Panel concluded that McGuire thereby violated CBOT Rules 521 and 539.A.
In accordance with the settlement offer, the Panel ordered McGuire to pay a fine of $7,500. The Panel also suspended McGuire for a period beginning on the effective date, lasting 10 business days, from accessing all CME Group Inc. trading floors, and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. The suspension shall run from October 22, 2015, through and including November 4, 2015.
October 22, 2015
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