FILE NO.:
16-0415-BC
NON-MEMBER:
Markus Groebner
RULE VIOLATIONS:
Rule 575.A. Disruptive Practices Prohibited
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.
FINDINGS:
On December 12, 2017, a Panel of the Board of Trade of the City of Chicago (“CBOT”) Probable Cause Committee charged Markus Groebner with violating CBOT Rule 575.A. based on allegations that on multiple occasions between August 1, 2015, and December 31, 2015, Groebner entered bids and offers on the Globex electronic trading platform during the pre-open period for December 2015 and March 2016 Wheat futures markets, which were not entered for the purpose of executing bona fide transactions. The entry and subsequent cancelation of these orders caused fluctuations in the publicly displayed Indicative Opening Price.
On April 22, 2019, a Hearing Panel Chair of the CBOT Business Conduct Committee (“BCC”) entered an order finding that Groebner failed to answer the charge issued against him. In failing to answer the charge, the Hearing Panel Chair further ordered that Groebner was deemed to have admitted the charge issued and waived his right to a hearing on the merits of the charge.
Pursuant to CBOT Rule 407.C., a penalty hearing was held before a Panel of the BCC on May 23, 2019. The Panel found Groebner guilty of committing the admitted charge.
PENALTY:
Based on the record and the Panel’s findings and conclusions, the Panel ordered Groebner to pay a find in the amount of $50,000, and suspended Groebner from: (1) applying for membership at any CME Group exchange; (2) direct or indirect access and use of any trading floor, electronic trading platform or clearing platform owned or operated by any CME Group exchange; and (3) affiliation with, employment by, or have a financial or beneficial interest in a Member or broker association beginning on June 14, 2019, and continuing for three years from the date the fine is paid in full.
EFFECTIVE DATE:
June 14, 2019