NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Brendan Delovitch

EXCHANGE RULE:

Rule 575 DISRUPTIVE PRACTICES PROHIBITED

All orders must be entered for the purpose of executing bona fide transaction. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

A. No person shall enter or cause to be entered an order with an 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 Brendan Delovitch (“Delovitch”) 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, Delovitch entered layered orders in the July 2017, September 2017, December 2017, and March 2018 Copper futures markets without the intent to trade. Specifically, he entered the layered orders to obtain fills on smaller orders he entered that were resting on the opposite side of the order book. After receiving a fill on the smaller order, Delovitch canceled the layered orders. The Panel concluded that Delovitch thereby violated Exchange Rule 575.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Delovitch to pay a $50,000 fine. The Panel also suspended Delovitch 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 4 months, beginning on the effective date below and continuing through and including January 30, 2021.

EFFECTIVE DATE:

September 30, 2020