NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Jerry Stowell

CME RULE VIOLATIONS:

Rule 432.B.2 General Offense (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 Mercantile Exchange (“CME”) 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 of which he jointly owned. Specifically, he submitted the transfer requests to the accounts’ Clearing Member firm to transfer E-mini S&P 500 futures, Feeder Cattle futures, and Live Cattle 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 CME 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 CBOT 21-1524-BC ($15,000 of which is allocated to CME). 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