• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT 18-0997-BC
      • Effective Date
      • 20 September 2019
    • FILE NO.:

      CBOT 18-0997-BC

      NON-MEMBER:

      Leonid Uvarov

      CBOT RULE VIOLATION:

      Rule 534. Wash Trades Prohibited

      No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

      FINDINGS:

      Pursuant to an offer of settlement in which Leonid Uvarov (“Uvarov”) neither admitted nor denied the rule violation upon which the penalty is based, on September 18, 2019, a Panel of the Chicago Board of Trade Business Conduct Committee (“Panel”) found that on three dates in April and June 2018, Uvarov entered matching buy and sell orders on the CBOT Globex trading platform in May and July 2018 Wheat TAS futures contracts, as well as July 2018 Soybean futures contracts, for accounts with common beneficial ownership. Uvarov entered the matching buy and sell orders with the knowledge and intent that the orders would match opposite one another for the purpose of flattening positions between accounts. The Panel concluded that Uvarov thereby violated CBOT Rule 534.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Uvarov to pay a $15,000 fine. The Panel also suspended Uvarov from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group for five business days, beginning on the effective date below and continuing through and including September 26, 2019.

      EFFECTIVE DATE:

      September 20, 2019