X-Change Financial Access, LLC
CME RULE VIOLATION:
432. GENERAL OFFENSES
(O). It shall be an offense for a Member to permit the use of its facilities or membership privileges in a manner that is detrimental to the interest or welfare of the Exchange or results in a violation of Exchange Rules or the Commodity Exchange Act.
Pursuant to an offer of settlement in which X-Change Financial Access, LLC (“XFA”) neither admitted nor denied the findings and conclusions herein, a panel of the CME Business Conduct Committee found that on October 15, 2008, an employee of XFA permitted Joseph Luizzi, at the time a Member with no affiliation to XFA, to use XFA’s facilities and phone lines to transmit his personal orders into the Standard and Poor’s 500 Stock Index Futures (“S&P”) pit. The use of XFA’s facilities and phone lines created a misperception as to the ownership of some of the orders that Luizzi was placing into the pit since the orders were transmitted from XFA’s telephone lines. By engaging in the foregoing conduct, the panel found that XFA violated CME Rule 432.O.
The Panel fined XFA $20,000.
October 7, 2010
Register for regular updates here and manage your email preferences.