• #
      • CME 17-0803-BC-3
      • Effective Date
      • 20 September 2019
    • FILE NO.:

      CME 17-0803-BC


      Scott Moore


      Rule 521. Requirements for Open Outcry Trades (in part)

      In open outcry trading, bidding and offering practices must at all times be conducive to the competitive execution of transactions. All open outcry transactions, including spread and combination transactions, shall be made openly and competitively in the pit designated for the trading of the particular transaction. No bid or offer shall be specified for acceptance by a particular trader. Transactions may take place only at the best price available in the open outcry market at the time the trade occurs.

      Rule 539. Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited (in part)

      A. General Prohibition

      No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.


      Pursuant to an offer of settlement in which Scott Moore (“Moore”) neither admitted nor denied the rule violations upon which the penalty is based, on September 18, 2019, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on four occasions between May 2017 and October 2017, Moore, a broker in the Eurodollar options on futures pit, non-competitively traded opposite other brokers within the same brokerage group without bidding or offering his orders in a manner consistent with open and competitive trades. Specifically, the Panel found that after receiving buy and sell orders for December 2017 and June 2018 Eurodollar Put spreads, March 2018 Covered Puts, and September 2017 Eurodollar Calls, Moore prearranged the execution of the smaller quantity of the opposing buy or sell order opposite the larger buy or sell order held by another broker from his group. Moore then confirmed the orders to the trading desk as being executed without first bidding or offering the orders openly and competitively in the pit. As a result, the full quantity of the orders was not executed openly and competitively in the pit. The Panel concluded that as a result Moore violated CME Rules 521 and 539.A.


      In accordance with the settlement offer, the Panel ordered Moore to pay a fine in the amount of $40,000. The Panel also suspended Moore 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 October 18, 2019, and continuing through, and including, October 31, 2019.


      September 20, 2019