NOTICE OF DISCIPLINARY ACTION

MEMBER:

BGC Financial L.P.

CME RULE VIOLATION:

Rule 432. General Offenses

W. 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 BGC Financial L.P. (“BGC”) neither admitted nor denied the rule violation upon which the penalty is based, on August 31, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that between January 7, 2020, and May 8, 2020, BGC traders knowingly entered orders in various Eurodollar options on futures markets opposite resting orders placed by another BGC trader before the resting orders were exposed on Globex for a minimum of 15 seconds. Additionally, on March 19, 2020, BGC traders prearranged the execution of a trade opposite another market participant on Globex in the June 2020 Eurodollar options on futures market. The Panel further found that BGC failed to diligently supervise its traders by failing to provide sufficient education and training regarding Exchange rules related to noncompetitive trading and crossing orders on Globex.

The Panel concluded that BGC thereby violated CME Rule 432.W.

PENALTY:                   

In accordance with the settlement offer, the Panel ordered BGC to pay a fine in the amount of $50,000 in connection with this case and companion case CBOT 20-1329 ($25,000 of which is allocated to CBOT).

EFFECTIVE DATE:                         

September 2, 2021