NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 16-0391-BC

MEMBER:

Eric Fawcett

CBOT RULE VIOLATIONS:

Rule 521. Requirements for Open Outcry Trades (in part)

In open outcry trading, bidding and offering practices must at all times be conducive to the competitive execution of transactions. All open outcry transactions, including spread and combination transactions, shall be made openly and competitively in the pit designated for the trading of the particular transaction. No bid or offer shall be specified for acceptance by a particular trader. Transactions may take place only at the best price available in the open outcry market at the time the trade occurs.

Rule 539. Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited (in part)

A. General Prohibition

No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.

FINDINGS:

Pursuant to an offer of settlement in which Eric Fawcett (“Fawcett”) neither admitted nor denied the rule violations upon which the penalty is based, on August 8, 2018, a Panel of the Chicago Board of Trade Business Conduct Committee (“Panel”) found that on January 12, 2016, Fawcett did not openly and competitively bid or offer for trades executed in the 10-Year T-Note options pit. The Panel concluded that Fawcett violated Rules 521 and 539.

PENALTY:

In accordance with the settlement offer, the Panel ordered Fawcett to pay a fine in the amount of $10,000 and to serve a 10 business-day suspension from accessing any CME Group Inc. trading floor and all direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. The suspension shall run from August 31, 2018, through September 14, 2018, inclusive.

EFFECTIVE DATE:

August 10, 2018