CBOT RULE VIOLATION:
RULE 562. POSITION LIMIT VIOLATIONS (in part)
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 limits shall be in violation of this rule.
Pursuant to an offer of settlement in which Cariov neither admitted nor denied the rule violation upon which the penalty is based, on January 24, 2013, a Panel of the CBOT Business Conduct Committee (the “Panel”) found that Cariov is subject to the jurisdiction of the Exchange because the conduct at issue occurred while he was employed by a member firm. The Panel also found that on February 11, 2011, Cariov failed to adhere to the allowable position limit of 6,500 contracts for orders in a single contract month as part of a futures spread within a crop year by entering and then cancelling bids in the 2011 March-May Wheat futures spread on several occasions, and if those bids were accepted would have caused Cariov to exceed the applicable position limit. The Panel found that in so doing, Cariov violated CBOT Rule 562.
In accordance with the settlement offer, the Panel ordered Cariov to pay a fine of $5,000 and have his access to all CME Group trading floors and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group suspended for 20 Business Days.
January 28, 2013
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