CME 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.
Pursuant to an offer of settlement in which Michael Vukmir (“Vukmir”) neither admitted nor denied the rule violation upon which the penalty is based, on May 8, 2019, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“BCC” or “Panel”) found that between June 1, 2016, and September 1, 2017, Vukmir entered and cancelled layered orders in several Class III Milk futures instruments without the intent to trade. Specifically, the Panel found that Vukmir layered orders on one side of the order book to encourage trades opposite his smaller orders resting on the opposite side of the order book. After receiving a fill on the resting smaller orders, Vukmir cancelled the layered orders on the opposite side of the market. The Panel thus concluded that Vukmir thereby violated CME Rule 575.A.
In accordance with the settlement offer, and after taking Vukmir’s financial condition into consideration when it levied the sanction, the Panel ordered Vukmir to pay a fine to the Exchange in the amount of $15,000. The Panel also suspended Vukmir 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 three months, beginning on the effective date below and continuing through and including August 10, 2019.
May 10, 2019