NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 13-9259-BC

MEMBER:

MARK SLOBODNIK

CME RULE VIOLATION:

432. GENERAL OFFENSES (in part)

It shall be an offense:

G. to prearrange the execution of transaction in Exchange products for the purpose of transferring equity between accounts.

FINDINGS:

Pursuant to an offer of settlement in which Mark Slobodnik (“Slobodnik”) neither admitted nor denied the rule violations upon which the penalty is based, on November 18, 2014, a Panel of the CME Business Conduct Committee (“BCC”) found that it had jurisdiction over Slobodnik pursuant to CME Rules 400 and 402 as the conduct occurred while Slobodnik was a CME member, and that between March 16, 2012, and December 21, 2012, Slobodnik—along with another Exchange member—prearranged the execution of several round-turn transactions in the S&P 500 futures open outcry market opposite the other member’s account. The purpose of the transactions was to transfer funds from Slobodnik’s account to the other member’s account.

The Panel concluded that Slobodnik thereby violated CME Rule 432.G.

PENALTY:

In accordance with the settlement offer, the Panel ordered Slobodnik to pay a fine of $50,000 and barred Slobodnik from accessing any CME Group Inc. trading floor, and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. for three months, beginning on the effective date below and continuing through and including February 20, 2015.

EFFECTIVE DATE:

November 20, 2014