NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:           

Robert Wieneke

CME RULE VIOLATION:                

Rule 575          Disruptive Practices Prohibited (In Part)

All orders must be entered for the purpose of executing bona fide transactions. 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 the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.

Market Regulation Advisory Notice Disruptive Practices Prohibited Rule 575 RA1903-5 (in part):

All orders be entered for the purpose of executing bona fide transactions and requires that all actionable and non-actionable messages be entered in good faith for legitimate purposes, including during the pre-open period.

The entry, modification or cancellation of orders during the pre-open period for the purpose of manipulating the IOP, causing artificial fluctuations in the Indicative Opening Price (“IOP”) or identifying liquidity in the order book violates Rule 575 and may be deemed to violate other Exchange rules.

FINDINGS:                    

Pursuant to an offer of settlement in which Robert Wieneke neither admitted nor denied the Rule violation or factual findings upon which the penalty is based, on October 26, 2021, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that from August 8, 2019, to April 20, 2020, Wieneke entered and canceled orders in Lean Hog futures contracts on the Globex electronic trading platform during the pre-open period that were not entered for the purpose of executing bona fide transactions. Rather, Wieneke entered and canceled the orders to discern the depth of the order book at varying price levels. The entry and cancelation of these orders caused fluctuations in the publicly displayed Indicative Opening Price. The Panel concluded that Wieneke thereby violated CME Rule 575.A.

PENALTY:                   

In accordance with the settlement offer, the Panel ordered Wieneke to pay a $20,000 fine 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 begin on the effective date below and continue through and include November 10, 2021.

EFFECTIVE DATE:                         

October 28, 2021