Deutsche Bank Securities Inc.
CBOT RULE VIOLATIONS:
17107.B. Delivery Payment (in part)
Buyers obligated to accept delivery must take delivery and make Delivery Payment and sellers obligated to make delivery must make delivery before 1:00 p.m. of the day of delivery, or by such other time designated by the Clearing House, except on banking holidays when delivery must be taken or made and Delivery Payment made before 9:30 a.m. the next banking business day, or by such other time designated by the Clearing House.
Pursuant to an offer of settlement in which Deutsche Bank Securities Inc. (“DBSI”) neither admitted nor denied the rule violations upon which the penalty is based, on August 7, 2012, a Panel of the CBOT Business Conduct Committee (“Panel”) found that during the March 2011 delivery cycle, based upon intents and invoices the firm submitted to the Exchange, DBSI was a short-position holder scheduled to deliver Rough Rice receipts to multiple long-position holders stopped for delivery. However, DBSI failed to completely deliver all receipts over the electronic warehouse receipt system prior to the 1:00 PM deadline on March 2, 2011. The Panel found that in so doing, DBSI violated CBOT Rule 17107.B.
In accordance with the settlement offer, the Panel fined DBSI $15,000.
August 9, 2012