CBOT RULE VIOLATION:
Rule 575. A. Disruptive Practices Prohibited (in part)
A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution;
Pursuant to an offer of settlement in which Kevin Crepeau (“Crepeau”) neither admitted nor denied the rule violation upon which the penalty is based, on December 20, 2018, a Panel of the Chicago Board of Trade Business Conduct Committee (“BCC” or “Panel”) found that on several occasions between January and June 2016, Crepeau entered and canceled large orders in multiple expiration months of the Soybean, Soybean Meal and Soybean Oil futures markets without the intent to trade. Specifically, Crepeau entered large orders on one side of a market and used an auto-spreader to enter smaller orders on the opposite side of the market. After receiving fills on his smaller orders, Crepeau immediately canceled the large orders he had previously entered on the opposite side of the order book.
The Panel concluded that Crepeau thereby violated CME Rule 575.A.
In accordance with the settlement offer, the Panel ordered Crepeau to pay a fine in the amount of $30,000. The Panel also suspended Crepeau 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 four months, beginning on the effective date below and continuing through and including May 31, 2019.
January 31, 2019