CBOT RULE VIOLATION:
Rule 575 (DISRUPTIVE PRACTICES PROHIBITED)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.
A. No person shall enter or cause to be entered an order with an intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
Pursuant to an offer of settlement in which Anuj Singhal (“Singhal”) neither admitted nor denied the rule violation upon which the penalty is based, on April 4, 2018, a Panel of the Chicago Board of Trade Business Conduct Committee (“Panel”) found that on multiple dates between June 2015 and December 2016, Singhal entered and canceled multiple layered orders on one side of the Wheat and Soybean futures markets, without the intent to trade the orders. Specifically, Singhal entered and cancelled orders on one side of the order book to enable the execution of smaller aggressive orders on the other side of the market. Furthermore, Singhal repeatedly and intentionally modified his layered orders up and down the order book to convey a false sense of increased volatility, which induced participants to trade in a manner that resulted in advantageous price movements into which Singhal aggressively traded. The Panel thereby concluded that Singhal violated CBOT Rule 575.A.
In accordance with the settlement offer, the Panel ordered Singhal to pay a $100,000 fine and serve a four-month suspension of any access to any CME Group Inc. trading floor and of 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 April 9, 2018, through August 9, 2018, inclusive.
April 9, 2018