• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-17-0737-BC
      • Effective Date
      • 05 October 2018
    • FILE NO.:

      CME 17-0737-BC

      NON-MEMBER:

      Eamon O’Floinn

      CME 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.

      FINDINGS:

      Pursuant to an offer of settlement in which Eamon O’Floinn (“O’Floinn”) neither admitted nor denied the rule violations upon which the penalty is based, on October 3, 2018, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“BCC” or “Panel”) found that on multiple occasions between November 1, 2016, and June 15, 2017, O’Floinn entered and canceled orders in the Live Cattle, Feeder Cattle, Lean Hogs, E- Mini S&P 500, and E-Mini NASDAQ 100 futures markets on the Globex electronic trading platform during the pre-opening period that were not entered for the purpose of executing bona fide transactions, but for the purpose of identifying the depth of the order book. The entry and cancellation of these orders caused fluctuations in the publicly displayed
      Indicative Opening Price. The Panel thus concluded that O’Floinn thereby
      violated CME Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered O’Floinn to pay a fine of $10,000. The Panel also suspended O’Floinn 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 10 business days, beginning on the effective date below and continuing through and including October 18, 2018.

      EFFECTIVE DATE:

      October 5, 2018