NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Jeffrey Hauschild

CME 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 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 Jeffrey Hauschild neither admitted nor denied the Rule violation or factual findings upon which the penalty is based, on August 10, 2022, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that on April 5, 2021, Hauschild entered buy and sell orders in the April 2021 Live Cattle futures contract for accounts with common beneficial ownership. Hauschild entered the opposing orders to match opposite each other for the purpose of freshening long futures position dates for his customer. The Panel found that Hauschild knew or reasonably should have known that the orders would match and that the purpose of the orders was to avoid taking a bona fide market position. The Panel concluded that Hauschild thereby violated CME Rule 534.

PENALTY:

In accordance with the settlement offer, the Panel ordered Hauschild to pay a $15,000 fine and to serve a five-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, beginning on the effective date below and continuing through and including August 18, 2022.

EFFECTIVE DATE:                           

August 12, 2022