• NOTICE OF DISCIPLINARY ACTION

      • #
      • CME-18-0901
      • Effective Date
      • 19 July 2019
    • FILE NO.:

      CME 18-0901-BC

      MEMBER:

      Larry C. Johnson

      CME RULE VIOLATIONS:

      Rule 432 G. General Offenses (in part)

      G. It shall be an offense to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

      FINDINGS:

      Pursuant to an offer of settlement in which Larry C. Johnson (“Johnson”) neither admitted nor denied the rule violation upon which the penalty is based, on July 17, 2019, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on February 5, 2018, Johnson prearranged the execution of transactions in the February 6, 2018 S&P 500 Flex 2000 Puts for the purpose of transferring equity between accounts he controlled in order to reduce maintenance margin requirements. The Panel concluded that Johnson thereby violated CME Rule 432.G.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Johnson to pay a fine in the amount of $50,000 and suspended his access to all CME Group trading floors and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. for 10 business days. The suspension shall run from July 19, 2019, through August 1, 2019, inclusively.

      EFFECTIVE DATE:

      July 19, 2019