NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 16-0398-BC

MEMBER:

Coby D. Tresner

CME RULE VIOLATIONS:

CME Rule 432. General Offenses (in part)

R. to fail to comply with a final arbitration award;

T. to engage in dishonorable or uncommercial conduct;

U. except where a power of attorney or similar document has been executed pursuant to Rule 956, for any party to accept or transmit a customer order which has not been specifically authorized.

FINDINGS:

On April 4, 2018, a Panel of the Chicago Mercantile Exchange (“CME”) Probable Cause Committee (“PCC”) charged member Coby D. Tresner (“Tresner”) with violating CME Rules 432. R., T., and U. based on allegations that on one or more occasions between December 2014, and March 2015, Tresner engaged in dishonorable conduct and accepted or transmitted a customer order that had not been specifically authorized. Specifically, despite the absence of an executed power of attorney or similar document, Tresner entered orders to buy and sell Feeder Cattle, Live Cattle, and E-Mini S&P Futures contracts for customer accounts without the account owners’ knowledge, permission, or authority to do so. As a result of this activity, Tresner caused more than $106,000 in losses for the customers’ accounts. Additionally, Tresner failed to comply with a final arbitration order from February 21, 2017, which directed Tresner to pay an award of $143,361.12.

On May 29, 2016, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) entered an order finding that Tresner failed to answer the charges issued against him. In failing to answer the charges, the Hearing Panel Chair further ordered that Tresner 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 June 13, 2018. The Panel found Tresner guilty of committing the admitted charges.

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered Tresner to pay a fine in the amount of $150,000, restitution in the amount of $106,017.77, to pay the final arbitration award of $143,361.12, and to have his access to all CME Group trading floors and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group, and 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 permanently barred.

EFFECTIVE DATE:

July 18, 2018