CBOT RULE VIOLATIONS:
Rule 432. General Offenses (in part)
It shall be an offense:
B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;
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;
Pursuant to an offer of settlement in which Peter DiStaulo (“DiStaulo”) neither admitted nor denied the rule violations upon which the penalty is based, on July 22, 2015, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that it had jurisdiction over DiStaulo pursuant to CBOT Rules 400 and 402 as the conduct occurred while DiStaulo was a CBOT member. The Panel also found that during the month of August 2012, and from January 1, 2014, to April 1, 2014, DiStaulo, on multiple occasions, entered large orders in the Soybean Oil futures contract markets without the intent to trade. The Panel specifically found a pattern of activity on Globex in which DiStaulo placed a smaller order to buy (sell) on the CME Globex electronic trading platform (“Globex”). DiStaulo subsequently entered multiple large-lot sell (buy) orders at or near the best offer (bid) on Globex, thus creating the appearance of an imbalance in buy/sell pressure. Once the smaller order began trading, DiStaulo canceled the large orders. The Panel found that DiStaulo entered these large orders for the purpose of inducing other market participants to trade opposite his smaller resting orders. The Panel concluded that DiStaulo thereby violated CBOT Rules 432.B.2. and 432.Q.
In accordance with the settlement offer and after taking DiStaulo’s financial condition into consideration when it levied the sanction, the Panel ordered DiStaulo to pay a fine in the amount of $20,000 and serve a 60 day suspension of access to any CME Group Inc. trading floor and of direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group, Inc., including CME Globex. The suspension shall run from July 24, 2015 through September 21, 2015, inclusive.
July 24, 2015
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