CME RULE VIOLATION:
533. Simultaneous Buy and Sell Orders for Different Beneficial Owners
… On the Globex platform, opposite orders for different beneficial owners that are simultaneously placed by a party with discretion over both accounts may be entered into the Globex platform provided that one order is exposed for a minimum of 5 seconds in the case of futures orders or a minimum of 15 seconds in the case of options orders….
Pursuant to an offer of settlement in which Joel Randriana (“Randriana”) neither admitted nor denied the rule violations upon which the penalty is based, on September 24, 2012, a Panel of the CME Business Conduct Committee found that Randriana submitted himself to the jurisdiction of the Business Conduct Committee and that on one or more occasions between February 16, 2010 and March 2011, Randriana and another non-member, both of whom were employed by Newedge Group Paris Branch crossed buy and sell orders on the CME Globex electronic trading platform in a manner that did not allow for exposure of the first order for the prescribed time period before entry of the second order. Additionally, February 16, 2010, Randriana failed to wait the requisite 5 seconds before placing simultaneous buy and sell futures orders for different beneficial owners on the CME Globex platform. The Panel found that in so doing, Randriana violated CME Rule 533.
In accordance with the settlement offer, the Panel fined Randriana $10,000 and suspended his direct access to any CME Group electronic trading or clearing platform, for 10 business days, beginning on October 15, 2012, and continuing through October 26, 2012, inclusive.
October 15, 2012
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