NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Mateer Brokerage Inc.

CME RULE VIOLATIONS:

RULE 526. – BLOCK TRADES (In Part)

The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:

F. Unless otherwise agreed to by the principal counterparties to the block trade, the seller, or, in the case of a brokered transaction, the broker handling the block trade, must ensure that each block trade is reported to the Exchange within the time period and in the manner specified by the Exchange. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.

CME GROUP MARKET REGULATION ADVISORY NOTICE RA2102-5:

Block Trade Submission Requirements to CME Clearing

The execution time of a block trade is the time that the trade is consummated, which is the time that the parties agree to the trade in principle. Market participants must accurately report the execution time of the block trade. The reporting of inaccurate execution times may result in disciplinary action.

FINDINGS:

Pursuant to an offer of settlement in which Mateer Brokerage Inc. neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on August 30, 2022, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that between March 1, 2021, and March 31, 2021, Mateer Brokerage Inc. submitted multiple block trades in various S&P 500 options contracts to the Exchange with inaccurate execution times and also failed to report block trades to the Exchange within the required time period following execution.

The Panel thereby concluded that Mateer Brokerage violated CME Rules 526 and 526.F.

PENALTY:

In accordance with the settlement offer, the Panel ordered Mateer Brokerage to pay a fine of $30,000.