CME RULE VIOLATIONS:
432. (General Offenses)
It shall be an offense:
T. To engage in uncommercial conduct
Pursuant to an offer of settlement in which Noah Schwartz (“Schwartz”) neither admitted nor denied the rule violations upon which the penalty is based, on November 26, 2012, a panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee found that on one or more occasions between May 30 and May 31, 2011, Schwartz executed trades in a user defined covered options spread by entering individual 1-lot orders to buy a covered risk reversal options spread so as to cause a short futures position to be over-allocated to him. The panel found that in doing so, Schwartz violated CBOT Rule 432.T.
In accordance with the settlement offer, the Panel fined Schwartz $20,000, and suspended his membership privileges, access to the trading floor, and direct access to any CME Group electronic trading platform for 5 business days.
November 28, 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.