CME RULE VIOLATIONS:
432. General Offenses
It shall be an offense:
B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;
T. to engage in dishonorable or uncommercial conduct;
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 Robert Burbano (“Burbano”) neither admitted nor denied the rule violations upon which the penalty is based, on December 19, 2012, a panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee found that on one or more occasions between January 1, 2011 and February 28, 2012, Burbano entered large orders in the E- mini Standard and Poor’s 500 Stock Price Index Futures (E-Mini S&P 500) during the pre-open that he did not intend to trade. The orders were priced through the prevailing Indicative Opening Price (“IOP”) and were cancelled prior to the time the market opened for trading. The Panel found that the entry and cancellation of these orders caused fluctuations in the publicly displayed IOP. The Panel found that in doing so, Burbano violated CME Rules 432.B.2, 432.T and 432.Q.
In accordance with the settlement offer, the Panel ordered Burbano to pay a fine of $15,000 and to have his membership privileges, access to the trading floor, and direct access to any electronic trading platform owned or operated by CME Group Inc., suspended for 20 business days.
December 21, 2012
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