NOTICE OF DISCIPLINARY ACTION

MEMBER:

303 Proprietary Trading LP

EXCHANGE RULE:

Rule 432.W. General Offenses

It shall be an offense for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.

FINDINGS:

Pursuant to an offer of settlement in which 303 Proprietary Trading LP (“303 Prop”) neither admitted nor denied the rule violation upon which the penalty is based, on September 23, 2020, a Panel of the Commodity Exchange Business Conduct Committee (“Panel”) found that on multiple dates between May 31, 2017, and December 11, 2017, a trader employed by 303 Prop entered layered orders in Commodity Exchange Copper futures markets on the Globex electronic trading platform without the intent to trade. After receiving fills on smaller orders he entered that were resting on the opposite side of the order book, the employee canceled the layered orders. The Panel found that 303 Prop failed to provide to its employees sufficient training regarding disruptive trade practices and failed to proactively monitor its employees’ trading activity to ensure compliance with Exchange rules. The Panel concluded that 303 Prop thereby violated Exchange Rule 432.W.

PENALTY:

In accordance with the settlement offer, the Panel ordered 303 Prop to pay a fine of $50,000.

EFFECTIVE DATE:

September 30, 2020