Mark Hinken (INX)
CME RULE VIOLATIONS:
521. REQUIREMENTS FOR OPEN OUTCRY TRADES
In open outcry trading, bidding and offering practices must at all times be conducive to the competitive execution of transactions. All open outcry transactions, including spread and combination transactions, shall be made openly and competitively in the pit designated for the trading of the particular transaction. No bid or offer shall be specified for acceptance by a particular trader. Transactions may take place only at the best price available in the open outcry market at the time the trade occurs.
539. PREARRANGED, PRE-NEGOTIATED AND NONCOMPETITIVE TRADES PROHIBITED
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 Mark Hinken (INX) neither admitted nor denied any rule violations upon which the penalty is based, on June 22, 2011, a panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee found that on one or more occasions between January 1, and June 30, 2009, while in possession of opening range, cash close and closing range orders in the Standard & Poor’s 500 Stock Price Index futures pit, Hinken indirectly crossed buy orders opposite sell orders without bidding or offering those contracts openly and competitively in the trading pit. The panel found that in doing so, Mark Hinken violated CME Rules 521 and 539.A.
In accordance with the offer of settlement, the Panel fined Mark Hinken $15,000 and suspended his membership privileges, access to any trading floor and direct access to any electronic trading or clearing platform owned or operated by CME Group, including CME Globex® for 20 business days. In addition, in accordance with the settlement offer, Mark Hinken shall never again handle customer orders in a floor broker capacity at any CME Group Exchange. Mark Hinken’s suspension will run from July 1, 2011 through July 29, 2011, inclusive.
July 1, 2011
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