John J. Supple
CBOT RULE VIOLATIONS:
432. General Offenses
It shall be an offense:
Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;
T. to engage in… uncommercial conduct;
Pursuant to an offer of settlement in which Supple neither admitted nor denied the rule violations upon which the penalty is based, on January 21, 2014, a Panel of the Chicago Board of Trade Business Conduct Committee (“Panel”) found that on 10 days between April 1, 2011 and October 31, 2011, Supple entered bids, offers and modifications during the pre-open period in Rough Rice at prices through the existing bid/offer, which were not made in good faith for the purpose of executing bona fide transactions. The entry, modification, and cancellation of these orders caused excessive fluctuations in the publicly displayed Indicative Opening Price (“IOP”). The Panel concluded that Supple thereby violated Rules 432.Q. and T.
In accordance with the settlement offer, the Panel ordered Supple to pay a fine to the Exchange in the amount of $20,000 and have his access to all CME Group trading floors and direct access to all electronic trading and clearing platforms owned or controlled by CME Group suspended for 15 business Days.
January 23, 2014
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