CME RULE VIOLATION:
539. PREARRANGED, PRE-NEGOTIATED AND NON-COMPETITIVE TRADES PROHIBITED
A. No person shall prearrange or pre-negotiate any purchase or sale or non-competitively execute any transaction.
Pursuant to an offer of settlement in which John Crathern neither admitted nor denied any rule violations upon which the penalty is based, on May 10, 2011, a panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee found that on September 25, 2008, Crathern prearranged or pre-negotiated the execution of a 2000-lot October 2008 Eurodollar Futures order with another non-member and by doing so, he violated CME Rule 539.A.
In accordance with the offer of settlement, the Panel ordered John Crathern to pay a fine of $15,000. The panel further suspended Crathern’s direct access to any trading floor or electronic trading or clearing platform owned or operated by CME Group Inc., including CME Globex®, for 20 business days. Crathern’s suspension will run from May 12, 2011 through June 8, 2011 inclusive.
May 12, 2011
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