• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-17-0827
      • Effective Date
      • 19 July 2019
    • FILE NO.:

      CME 17-0827-BC

      NON-MEMBER:

      Phil Ferguson

      CME RULE VIOLATION:

      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:

      Pursuant to an offer of settlement in which Phil Ferguson (“Ferguson”) neither admitted nor denied the rule violation upon which the penalty is based, on July 17, 2019, a Panel of the CME Business Conduct Committee (“Panel”) found that on several dates between June 22, 2017, and October 11, 2017, Ferguson entered and canceled multiple layered orders in the September 2017 E-mini S&P MidCap 400, DEC17 MidCap, and December 2017 E-mini Russell 2000 Index futures markets without the intent to trade those orders, but rather, to encourage market participants to trade opposite a smaller order he entered on the opposite side of the order book. After receiving a fill on the smaller order, Ferguson canceled the layered orders.

      The Panel found that as a result of the foregoing, Ferguson violated CME Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, and after taking Ferguson’s financial condition into consideration when it levied the sanction, the Panel ordered Ferguson to pay a fine of $5,000 and to serve a four-month suspension 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. The suspension shall begin on the effective date below and continue through and include November 19, 2019.

      EFFECTIVE DATE:

      July 19, 2019