NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:           

Marvin Lewis

CBOT RULE VIOLATION:                

Rule 432          General Offenses (in part)

It shall be an offense:

B.2.       to engage in conduct or proceedings inconsistent with just and equitable principles of trade.

FINDINGS:

Pursuant to an offer of settlement in which Marvin Lewis neither admitted nor denied the rule violations upon which the penalty is based, on July 26, 2021, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on multiple instances between August 2017, and June 2019, Lewis, a broker, improperly requested trade transfers between his customers’ accounts for trades executed in E-Mini Dow and Corn futures. At the customer’s direction, Lewis submitted requests to the accounts’ Clearing Member firm to transfer profitable trades from the customer’s account to his two family members’ accounts, over which the customer had power of attorney. He also submitted requests to transfer losing trades from the family members’ accounts to the customer’s account. These trade transfer requests were not submitted pursuant to any of the justifications described in Rule 853.A. The Panel concluded that Lewis thereby violated CBOT Rule 432.B.2.

PENALTY:                   

In accordance with the settlement offer, the Panel ordered Lewis to pay a fine of $15,000 ($5,000 of which is payable to CBOT) and to serve a 10 business day suspension 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. The suspension shall run from July 28, 2021, through August 10, 2021, inclusive.

EFFECTIVE DATE:                         

July 28, 2021