NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Jerry Stowell

CBOT RULE VIOLATION:

Rule 432.B.2 General Offenses (in part)

It shall be an offense:

B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade.

FINDINGS:

Pursuant to an offer of settlement in which Jerry Stowell neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on September 6, 2023, a Panel of the Chicago Board Of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on multiple instances between June 2020, and November 2021, Stowell, a broker, improperly requested trade transfers of profitable trades from his personal account to various accounts in which he either jointly owned or had power of attorney. Specifically, he submitted the transfer requests to the accounts’ Clearing Member firm to transfer Corn futures. Stowell failed to submit these trade transfer requests to the accounts’ Clearing Member firm pursuant to any of the justifications described in Rule 853.A. The Panel concluded that Stowell thereby violated CBOT Rule 432.B.2.

PENALTY:

In accordance with the settlement offer, the Panel ordered Stowell to pay a $25,000 fine in connection with this case and CME 21-1524-BC ($10,000 of which is allocated to CBOT). The Panel also suspended Stowell 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 September 15, 2023.

EFFECTIVE DATE:

September 11, 2023