• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT-16-0455-BC-1
      • Effective Date
      • 20 September 2018
    • FILE NO.

      CBOT 16-0455-BC

      NON-MEMBER:

      Garrett Connery

      CBOT RULE VIOLATION:

      Rule 575 DISRUPTIVE PRACTICES PROHIBITED

      All orders must be entered for the purpose of executing bona fide transaction. 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.

      FINDINGS:

      Pursuant to an offer of settlement in which Garrett Connery (“Connery”) neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on September 18, 2018, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“BCC” or “Panel”) found that between September 1, 2015, and May 23, 2016, Connery engaged in a pattern of activity in the Kansas City Wheat, Wheat, Soybean Meal, and Soybean futures markets by entering orders without the intent to trade. Specifically, the Panel found that Connery layered orders on one side of the market and then cancelled them after smaller resting orders on the opposite side of the order book were executed. The Panel thus concluded that Connery thereby violated CBOT Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Connery to pay a total fine in the amount of $75,000 in connection with this case and companion case CME 16-0455-BC ($50,000 of which is allocated to CBOT). The Panel also suspended Connery from access to any CME Group trading floor and direct and indirect access to all electronic trading and clearing platforms owned or operated by CME Group for six weeks, beginning on the effective date below and continuing through and including November 1, 2018.

      EFFECTIVE DATE:

      September 20, 2018