Diego Di Stefano
CME RULE VIOLATIONS:
CME Rule 432 General Offenses (in part)
It shall be an offense:
B. 1. To engage in fraud or bad faith.
C. To engage in dishonest conduct.
G. To prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.
L. 1. To fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation.
On March 15, 2016, a Panel of the Chicago Mercantile Exchange (“CME”) Probable Cause Committee (“PCC”) charged non-member Diego Di Stefano (“Di Stefano”) with violating CME Rules 432.B.1, 432.C, 432.G, and 432.L based on allegations that between September 24, 2014, and November 14, 2014, Di Stefano prearranged the execution of transactions in E-mini S&P futures for the purpose of transferring equity between accounts.
On August 8, 2016, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) entered an order finding that Di Stefano failed to answer the charges issued against him. In failing to answer the charges, the Hearing Panel Chair further ordered that Di Stefano was deemed to have admitted the charges issued and waived his right to a hearing on the merits of the charges.
Pursuant to CME Rule 407.C., a penalty hearing was held before a Panel of the BCC (“Panel”) on October 4, 2016. The Panel found Di Stefano guilty of committing the admitted charges.
Based on the record and the Panel’s findings and conclusions, the Panel ordered Di Stefano to pay a fine in the amount of $75,000, and barred him permanently from (1) membership and privileges at any CME Group Exchange, (2) direct or indirect access and use of any CME Group trading floor, electronic trading platform or clearing platform owned or operated by any CME Group Exchange, and (3) affiliation with, employment by or association with a Member (as this term is defined in Rule 400) or affiliate of a Member of any CME Group Exchange.
November 8, 2016