Rule 432. General Offenses
It shall be an offense:
G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts;
Pursuant to an offer of settlement that Peter Birch (“Mr. Birch”) presented at a hearing on September 30, 2015, in which Mr. Birch neither admitted nor denied the findings or the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found it has jurisdiction over Mr. Birch, a member of the Exchange, pursuant to Exchange Rules 400 and 402, and that on December 24, 2013 and December 27, 2013, Mr. Birch pre-arranged and executed two round turn transactions, totaling 770 contracts, in the March 2014 Copper Futures contract which resulted in the transfer of $119,625 between two accounts owned by Mr. Birch, but not involving any customer accounts.
The Panel found that as a result of the foregoing, Mr. Birch violated Exchange Rule 432.G.
In accordance with the settlement offer, the Panel ordered Mr. Birch to pay a fine to the Exchange in the amount of $35,000. The Panel also suspended Mr. Birch from all membership privileges and direct or indirect access to any trading floor or electronic trading or clearing platform owned or operated by CME Group Inc., including Globex, for a period of 5 business days. The suspension will run from October 2, 2015 through and including October 8, 2015.
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