NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Jacob Wiznitzer

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 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 Jacob Wiznitzer neither admitted nor denied the Rule violation or factual findings upon which the penalty is based, on April 19, 2023, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that on July 19, 2021, Wiznitzer entered buy and sell orders in the July 2021 E-mini S&P Monday Weekly 3995 Put and 4420 Call options on futures markets that matched opposite each other for accounts in which he owned and shared beneficial ownership. Wiznitzer entered the opposing orders to transfer positions between accounts to avoid surpassing the number of contracts his clearing firm permitted the accounts to hold. Wiznitzer knew or reasonably should have known that the purpose of the orders was to avoid taking a bona fide market position exposed to market risk. The Panel concluded that Wiznitzer thereby violated CME Rule 534.

PENALTY:

In accordance with the settlement offer, the Panel ordered Wiznitzer to pay a fine of $10,000. The Panel also suspended Wiznitzer 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 April 27, 2023.

EFFECTIVE DATE:

April 21, 2023