• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME 11-8204-BC
      • Effective Date
      • 19 August 2013
    • FILE NO.:

      CME 11-8204-BC

       

      NON-MEMBER:

      Nicola Davolio

       

      CME RULE VIOLATIONS:

      Rule 432. General Offenses

      It shall be an offense:

      G. To prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

      Rule 576. Identification of Globex Terminal Operators (In Part)

      Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules… Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

       

      FINDINGS:

      Pursuant to an offer of settlement in which Nicola Davolio (“Davolio”) neither admitted nor denied the rule violations upon which the penalty is based and after voluntarily submitting himself to the jurisdiction of the Exchange for purposes of resolving this matter, on August 15, 2013, a Panel of the CME Business Conduct Committee found that, on September 17, 2010, in the June
      2011 E-mini Standard & Poor’s 500 Stock Price Index 1210 and 1220 put options Davolio executed prearranged trades on the Globex electronic trading platform for the purpose of transferring equity between two accounts he controlled. In addition, Davolio utilized another individual’s Globex user ID (“TAG 50”) to enter orders on to Globex. The Panel concluded that Davolio thereby violated CME Rules 432.G. and 576.

       

      PENALTY:

      In accordance with the settlement offer, the Panel suspended Davolio’s direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group for six months, from August 19, 2013, to February 19,
      2014, inclusive.

       

      EFFECTIVE DATE:

      August 19, 2013