GEORGE MANEATES (GMAN)
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 George Maneates (“Maneates”) neither admitted nor denied the 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 three(3) occasions from October through November 2008, Maneates engaged in prearranged, noncompetitive trades of COMEX Silver and Gold options opposite a broker’s customer order without bidding or offering in the ring.
The Panel further found that on October 13, 2008, Maneates accepted a profitable round-turn transaction into his personal account that was executed noncompetitively by another trader. As a result of these trades Maneates profited $6,000.
The Panel found that in so doing, Maneates violated Legacy COMEX Rules 104.21 and Legacy NYMEX Rule 8.55(A)(18).
In accordance with the settlement offer, the Panel ordered Maneates to (i) pay a fine to the Exchange in the amount of $20,000; (ii) disgorge $6,000 in ill-gotten profits; and (iii) accept a bar beginning on the effective date of the Committee’s decision and lasting six (6) weeks from the date the fine is paid in full from 1) reapplying for membership privileges or application for clerk privileges on any CME Group Inc. exchange, and 2) from directly accessing all electronic trading and clearing platforms owned or controlled by CME Group, including CME Globex.
August 1, 2011
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