DZ Bank AG
CME RULE VIOLATIONS:
Rule 562 (“Position Limit Violations”) (in part)
Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations. Additionally, any person making a bid or offer that would, if accepted, cause such person to exceed the applicable position limits shall be in violation of this rule.
Pursuant to an offer of settlement in which DZ Bank AG (“DZ Bank”) neither admitted nor denied the rule violations upon which the penalty is based, on February 27, 2014, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that DZ Bank consented to the jurisdiction of the Exchange under Rule 418, and that from April 10, 2013, to April 17, 2013, accounts controlled by DZ Bank and an affiliate of DZ Bank, which were aggregated for purposes of Exchange position limits, held positions in June 2013 Nikkei Stock Average Futures that exceeded the all contract months combined limit of 5,000 contracts in effect at that time. During this time period, DZ Bank’s aggregate position exceeded the limit by between 288 and 355 contracts, or by approximately 5.8% to 7.1%. The Panel also found that on April 24, 2013, accounts controlled by DZ Bank and its affiliate exceeded the all contract months combined limit by 14 contracts, or approximately 0.3%. DZ Bank liquidated its overage position on April 24, 2013 at a profit of $3,150.
The Panel concluded that DZ Bank thereby violated CME Rule 562.
In accordance with the settlement offer, the Panel ordered DZ Bank to pay a fine of $50,000 and to disgorge profits of $3,150.
March 3, 2014
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