James P. Werner
CME RULE VIOLATIONS:
Rule 432 General Offenses (in part)
It shall be an offense:
B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade.
Rule 539 Prearranged, Pre-negotiated and Noncompetitive Trades Prohibited (in part)
A. No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction…
Pursuant to an offer of settlement in which James P. Werner (“Werner”) neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the CME Business Conduct Committee (“Panel”) found that it had jurisdiction over Werner pursuant to Rules 400 and 402 as the conduct occurred while Werner was a CME member. The Panel also found that on one or more occasions between July 8, 2013, and September 25, 2013, Werner, acting as a desk supervisor of a member firm, directed a brokerage group to noncompetitively cross a minimum percentage of opposing JB Drax Honoré Inc. buy and sell orders in the Eurodollar options on futures pit. In addition to indicating that they would withhold executable orders from brokers in the pit, Werner indicated that JB Drax brokers would use alternative execution avenues, including block transactions, should the pit brokers fail to cross this minimum percentage of orders. The Panel concluded that Werner thereby violated CME Rules 432.B.2 and 539.A.
In accordance with the settlement offer, the Panel ordered Werner to pay a fine in the amount of $25,000 and serve a six week suspension of access to any CME Group Inc. trading floor and of direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from May 26, 2015, through July 7, 2015, inclusive.
May 26, 2015
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