• NOTICE OF DSICIPLINARY ACTION

      • #
      • CBOT-18-0999-BC
      • Effective Date
      • 22 November 2019
    • FILE NO.:

      CBOT 18-0999-BC

      MEMBER:

      David Benoit

      CBOT RULE VIOLATION:

      Rule 531. Trading Against Customers’ Orders Prohibited

      A. General Prohibition

      No person in possession of a customer order shall knowingly take, directly or indirectly, the opposite side of such order for his own
      account, an account in which he has a direct or indirect financial interest, or an account over which he has discretionary trading
      authority.

      FINDINGS:

      Pursuant to an offer of settlement in which David Benoit (“Benoit”) neither admitted nor denied the rule violations or factual findings
      upon which the penalty is based, on November 20, 2019, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that between June 1, 2017, and June 6, 2018, Benoit, a broker, executed trades in various 10-Year US Treasury Note Options, 5-Year US Treasury Note Options, and US Treasury Bond Options markets wherein Benoit’s personal trading account traded against customer orders he worked in the pit. The Panel concluded that Benoit thereby violated CBOT Rule 531.

      PENALTY:

      In accordance with the settlement offer, the Panel ordered Benoit to pay a fine of $40,000. The Panel also suspended Benoit 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 one week, beginning on the effective date below and continuing through and including November 29, 2019.

      EFFECTIVE DATE:

      November 22, 2019