• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT 18-1000-BC
      • Effective Date
      • 25 September 2019
    • FILE NO.:

      CBOT 18-1000-BC

      MEMBER:

      E. Davison Massey

      CBOT RULE VIOLATION:

      Rule 562 (“Position Limit Violations”) (in part)

      Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations, including positions established intraday.

      FINDINGS:

      Pursuant to an offer of settlement in which E. Davison Massey neither admitted nor denied the rule violation upon which the penalty is based, on September 18, 2019, a Panel of the CBOT Business Conduct Committee (“Panel”) found that at the close of business on July 31, 2018, Massey held a net futures position of 875 contracts short in August 2018 Soybean Meal futures contracts, which was 155 contracts, or 21.53%, in excess of the spot month position limit of 720 contracts in effect. On the start of overnight trading hours for trade date August 1, 2018, Massey liquidated his overage to bring his position into compliance resulting in a profit of $16,560.05.

      The Panel concluded that Massey thereby violated CME Rule 562.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Massey to pay a fine of $40,000 and to pay disgorgement in the amount of $16,560.05. The Panel also suspended Massey 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 10-business days, beginning on the effective date below and continuing through and including October 8, 2019.

      EFFECTIVE DATE:

      September 25, 2019