432. General Offenses
It shall be an offense:
Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;
T. to engage in dishonorable or uncommercial conduct:
Pursuant to an offer of settlement that Edward Turanzas (“Turanzas”) presented at a hearing on October 8, 2015, in which Turanzas neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found that it had jurisdiction over Turanzas pursuant to Exchange Rules 400 and 402 as Turanzas is a member of the Exchange, and that on multiple occasions between January 2014 and October 2014, Turanzas entered orders in various contracts on the CME Globex electronic trading platform during the pre-open session that were not for the purpose of executing bona fide transactions. The Panel further found that the entry and subsequent cancellation of these orders caused fluctuation in the publicly displayed Indicative Opening Price.
The Panel found that as a result of the foregoing, Turanzas violated Exchange Rules 432.Q. and 432.T.
In accordance with the settlement offer, the Panel ordered Turanzas to pay a fine to the Exchange in the amount of $15,000. The Panel also ordered Turanzas to serve a 10 business day suspension from membership privileges on any CME Group Inc. Exchange; access to all CME Group Inc. trading floors; and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from October 12, 2015, through and including October 23, 2015.
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