DONALD G. MARSHALL (DON)
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 Donald Marshall (“Marshall”) neither admitted nor denied the rule violations upon which the penalty is based for purposes of resolving this matter, on July 27, 2011, a panel of the COMEX Business Conduct Committee (the “Panel”) found that during the relevant time period Marshall was a dual trader in the Silver options ring at COMEX. The Panel further found that on three (3) occasions from October through December 2008, Marshall executed noncompetitive trades of Silver options opposite other traders for his benefit. As a result of these trades Marshall profited $3, 500. Additionally, on October 13, 2008, Marshall received a trade allocation from another trader and thereby obtained an ill-gotten gain of $750.
The Panel found that in so doing, Marshall violated Legacy COMEX Rules 104.21 and Legacy NYMEX Rule 8.55(A)(18).
In accordance with the settlement offer, the Panel ordered Marshall to (i) pay a fine to the Exchange in the amount of $20,000; (ii) disgorge $4,250 in ill-gotten profits; (iii) serve a suspension for a period lasting one (1) month 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; and (iv) cease and desist from similar future violations.
August 1, 2011
Register for regular updates here and manage your email preferences.