BRIAN J. BEATTY (BEA)
COMEX RULE VIOLATIONS:
Legacy COMEX Rule 104.21 – OPEN OUTCRY
Except to the extent otherwise permitted by the By-Laws and Rules, every order to buy and sell, and every purchase and sale of, a futures contract or futures option must be offered or executed openly and competitively by public outcry in a ring specified in the By-Laws and Rules.
NYMEX RULE VIOLATION:
Legacy NYMEX Rule 8.55 – CLASSIFICIATION OF OFFENSES
(A) Major Offenses – No Member, Member Firm, or any employee of the foregoing shall commit a violation of any of the following rules, which shall be deemed major offenses of the Exchange.
(18) to commit an act which is substantially detrimental to the interests or welfare of the Exchange.
Pursuant to an offer of settlement in which Brian Beatty “(Beatty”) neither admitted nor denied the findings or rule violations upon which the penalty is based for purposes of resolving this matter, on July 28, 2011, a panel of the COMEX Business Conduct Committee (the “Panel”) found that on five (5) occasion from October through December 4, 2008, Beatty executed noncompetitive trades of COMEX Silver options opposite other traders.
The Panel found that in so doing, Beatty violated Legacy COMEX Rules 104.21 and Legacy NYMEX Rule 8.55(A)(18).
In accordance with the settlement offer, the Panel ordered Beatty to pay a fine to the Exchange in the amount of $35,000 and serve a suspension for a period lasting two (2) calendar weeks of his 1) membership privileges; 2) access to all CME Group Inc. trading floors; and 3) direct access to all electronic trading and clearing platforms owned or controlled by CME Group, including CME Globex.
August 1, 2011
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