NOTICE OF DISCIPLINARY ACTION

MEMBER:

Daniel Lomer

CME RULE VIOLATION:

Rule 575.D. Disruptive Practices Prohibited

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

FINDINGS:

Pursuant to an offer of settlement in which Daniel Lomer neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on October 25, 2022, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that between May 28, 2020, and October 6, 2020, Lomer created and executed trades in covered User Defined Spreads (“UDS”) in E-mini S&P 500 options spreads on the Globex electronic trading platform to receive advantageous over-allocations or under-allocations of futures contracts associated with the covered options instrument.

The Panel thereby concluded that Lomer violated CME Rule 575.D.

PENALTY:

In accordance with the settlement offer, the Panel ordered Lomer to pay a fine of $45,000. The Panel also suspended Lomer 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 five business days, beginning on the effective date below and continuing through and including November 2, 2022.

EFFECTIVE DATE:

October 27, 2022