CME RULE VIOLATIONS:
Rule 432. General Offenses (in part)
It shall be a violation:
B. to engage in fraud, bad faith, or in conduct or proceedings inconsistent with just and equitable principles of trade;
C. to engage in dishonest conduct.
Rule 539. General Prohibition
A. No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.
Pursuant to an offer of settlement in which non-member Gary Wilks (“Wilks”) neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the CME Business Conduct Committee (“BCC”) found that from February 1, 2008 through October 31, 2008, while controlling accounts for his employer, Daisy Brand LLC, Wilks executed a series of noncompetitive trades for his personal account opposite his employer’s account in a manner designed to allow Wilks to profit at Daisy Brand’s expense. Wilks either used Daisy Brand’s account to establish or offset a trade at a price that allowed him to profit, or executed round-turn trades with Daisy Brand’s accounts resulting in a movement of money to Wilks’ personal account. The BCC found that in so doing, Wilks violated CME Rule 432.B., Rule 432.C., and Rule 539.A.
In accordance with the settlement offer and in consideration of the fact that Wilks recompensed Daisy Brand nearly $80,000 on his own accord, the BCC permanently barred Wilks from: applying for membership at any CME Group exchange; directly or indirectly accessing, using, or entering orders on any electronic trading or clearing platform owned or operated by CME Group; accessing any trading floor owned or operated by any CME Group exchange; and affiliating with or being employed by any Member, as defined by CME Rule 400.
February 1, 2012
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