JEFFREY A. COBURN (OBU)
CME RULE VIOLATION:
532. Disclosing Orders Prohibited
No person shall disclose another person’s order to buy or sell except to a designated Exchange official or the CFTC, and no person shall solicit or induce another person to disclose order information. An order for pit execution is not considered public until it has been bid or offered by open outcry. No person shall take action or direct another to take action based on non-public order information, however acquired. The mere statement of opinions or indications of the price at which a market may open or resume trading does not constitute a violation of this rule.
Pursuant to an offer of settlement in which Jeffrey Coburn neither admitted nor denied the findings, on March 18, 2010, a Panel of the CME Business Conduct Committee found that on a single date in 2008, while acting as a top step broker in the S&P 500 futures pit and while in possession of a large buy-stop order in the September 2008 S&P futures contract, Coburn placed buy-stop and sell-limit orders in the September 2008 E-mini S&P market on Globex for his personal account. The Panel found that by entering trades for his personal account based on non-public order information Coburn violated CME Rule 532.
In accordance with the settlement offer, the Panel fined Coburn $25,000 and suspended his membership privileges, access to any CME Group trading floor and direct access to any CME Group electronic trading or clearing platform for 20 business days, the period to commence March 19 and continue through April 16, 2010, inclusive.
March 22, 2010
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