HOWARD S. HORWITZ (HWRD)
CME RULE VIOLATIONS:
536. RECORDKEEPING REQUIREMENTS FOR PIT, GLOBEX, AND NEGOTIATED TRADES
A. General Requirements for Open Outcry Pit Trades
….Floor brokers executing an order shall record their trading symbol, price, quantity, bracket opposite trade and clearing member…. In addition, each member must maintain, and is accountable for, all other documents on which original trade information is recorded….
515. REGISTRATION AND IDENTIFICATION OF BROKER ASSOCIATIONS
Each principal of a Revenue Sharing Association must diligently supervise the association’s member registrants and non-member employees and may be held directly liable for violations of any rule of the Exchange by such registrants and employees….
Pursuant to an offer of settlement in which Horwitz neither admitted nor denied the findings, on March 24, 2011, a panel of the CME Business Conduct Committee found that on one occasion in 2008, Horwitz, a principal of Bear Brokerage, LLC, (“Bear”) failed to accurately record a trade and retain original endorsements for a trade made in the Eurodollar options pit. The Panel also found that in 2008 Horwitz failed to properly supervise associates and clerks of his broker association for recordkeeping requirements in the Eurodollar options pit. In so doing Horwitz violated CME Rule 536 and 515.D.
In accordance with the settlement offer, the Panel fined Horwitz $12,500.
April 6, 2011
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