NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 06-TPR-53-BC

MEMBER:

JOHN JAKUBOWSKI (JNJ)

LEGACY CBOT REG. VIOLATION:

350.05 (Trading Practices)

The following acts are prohibited and shall constitute acts detrimental to the welfare of the Exchange . . .

(i) No person shall buy and sell as an accommodation at any time or, except as specifically provided in Regulations 331.04 and 9B.13, to use one order to fill another order, or any part thereof.
 

FINDINGS:

After a full evidentiary hearing on the merits, on March 3, 2010, a Panel of the CBOT Business Conduct Committee (“Panel”) found that member John Jakubowski, on August 25, 2006, participated in a trade where he accommodated another broker in the 5-Year Treasury Note futures pit to match a buy order to the other broker’s sell order. The Panel found that in so doing Jakubowski violated legacy CBOT regulations 350.05(f) and 350.05(i).

PENALTY:

In accordance with the Panel’s findings, it fined Jakubowski $40,000 and suspended his membership privileges, access to any CME Group trading floors and direct access to the Globex electronic trading platform for fifteen business days, beginning March 25, 2010, and continuing through April 14, 2010, inclusive.

EFFECTIVE DATE:

March 25, 2010