EAGLE MARKET MAKERS INC.
CME RULE VIOLATION:
Rule 432. (“GENERAL OFFENSES”)
It Shall be an Offense:
Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange.
Pursuant to an offer of settlement in which Eagle Market Makers Inc. (“Eagle”) neither admitted nor denied the rule violations upon which the penalty is based, on August 16, 2012, a Panel of the Chicago Mercantile Exchange Business Conduct Committee found that on June 16 and 17, 2009, Eagle traders entered an excessive amount of price modifications into the Globex electronic trading platform that caused a distortion in the Eurodollar futures spread quote stream. No errant orders were executed as a result of the excessive price modifications. At the time, Eagle did not have appropriate programs or procedures in place to prevent errant messaging: however, once alerted of the problem, Eagle took steps designed to prevent future instances of excessive price modifications from being entered into Globex. The Panel found that in so doing, Eagle violated CME Rule 432.Q.
In accordance with the settlement offer, the Panel fined Eagle $20,000.
August 20, 2012
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