NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Logan Bouscher

CBOT RULE VIOLATION: Rule 534 Wash Trades Prohibited

No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash trades or wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

FINDINGS:

Pursuant to an offer of settlement in which Logan Bouscher neither admitted nor denied the rule violation upon which the penalty is based, on April 20, 2022, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on five days between February 2020 and June 2020, Bouscher, while using Trading at Settlement transactions, placed opposing buy and sell orders for Soybean futures contracts for his employer’s accounts with brokers at three different firms. The orders traded against each other in part, and Bouscher knew or reasonably should have known that the execution of the orders would result in a prohibited wash result. The purpose of these transactions was to open simultaneous long and short hedges in two different accounts.

The Panel concluded that Bouscher thereby violated CBOT Rule 534.

PENALTY:

In accordance with the settlement offer, the Panel ordered Bouscher to pay a fine in the amount of $10,000 and suspended Bouscher 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 5 business days, beginning on the effective date below, and continuing through and including April 28, 2022.