NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

George Haseotes

CBOT RULE VIOLATIONS:

Rule 433. Strict Liability for the Acts of Agents

Pursuant to Section 2(a)(1)(B) of the Commodity Exchange Act, and notwithstanding Rule 432.W., the act, omission, or failure of any official, agent, or other Person acting for any party within the scope of his employment or office shall be deemed the act, omission or failure of the party, as well as of the official, agent or other Person who committed the act.

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.

D. No person shall enter or cause to be entered an actionable or non-actionable message(s) with intent to disrupt, or with reckless disregard for the adverse impact on, the orderly conduct of trading or the fair execution of transactions.

Rule 576. Identification of Globex Terminal Operators (in part)

Each individual must use a unique operator ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using an operator ID other than the individual’s own unique operator ID.

FINDINGS:

Pursuant to an offer of settlement in which George Haseotes neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on August 10, 2022, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on multiple occasions between January 5, 2021, and September 17, 2021, in November 2021 and November 2022 Soybean futures, an employee of Haseotes entered aggressive orders that greatly exceeded the quantity at the best bid and offer and beyond. The orders traded immediately through multiple price levels and resulted in disruptive price movements and reversions. Further, the employee entered the orders using the operator ID assigned to Haseotes.

The Panel concluded that, pursuant to CBOT Rule 433, Haseotes is strictly liable for the acts of his employee whose conduct violated CBOT Rule 575.D. The Panel also found that Haseotes violated CBOT Rule 576.

PENALTY:

In accordance with the settlement offer, the Panel ordered Haseotes to pay a $15,000 fine in connection with this case and companion case CME 21-1475-BC (of which $7,500 is allocated to CBOT) and suspended him from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. for 10 business days. The suspension shall begin on the effective date below and continue through and include August 25, 2022.

EFFECTIVE DATE:

August 12, 2022