• NOTICE OF DISCIPLINARY ACTION

      • #
      • CBOT-18-0932-BC
      • Effective Date
      • 22 November 2019
    • FILE NO.:

      18-0932-BC

      MEMBER:

      Michael Glass

      CBOT RULE VIOLATION:

      Rule 575. A. Disruptive Practices Prohibited (in part)

      A. 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 Michael Glass (“Glass”) neither admitted nor denied the rule violation upon which the penalty is based, on November 20, 2019, a Panel of the Chicago Board of Trade Business Conduct Committee (“BCC” or “Panel”) found that on several occasions between January 1, 2018, and March 31, 2018, Glass entered and canceled layered orders in the March 2018 and May 2018 Soft Red Wheat (“Wheat”) futures markets without the intent to trade. Specifically, Glass layered orders on one
      side of the order book and subsequently entered a smaller, typically aggressive, order on the opposite side of the order book. After receiving a fill on the smaller order, Glass canceled the layered orders on the opposite side of the order book. The Panel concluded that Glass thereby violated CME Rule 575.A.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Glass to pay a fine in the amount of $25,000 and to serve a one-month suspension from direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group beginning on the effective date below and continuing through and including December 22, 2019.

      EFFECTIVE DATE:

      November 22, 2019