NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 07-73172-BC
 

MEMBER:

WILLIAM JOHN FORSTER

CBOT REG. VIOLATION:

(legacy) Regulation 9B.14 Good Faith Bids and Offers

A member or Registered User shall not knowingly enter or cause to be entered, bids or offers into the e-cbot system other than in good faith for the purpose of executing bona fide transactions.

FINDINGS:

Pursuant to an offer of settlement in which William John Forster neither admitted nor denied the rule violation upon which the penalty is based, on August 31, 2010, a Panel of the CBOT Business Conduct Committee found that on several dates during the delivery months of 2007, Forster executed 18 transactions on the e-cbot electronic trading platform in the Soybean, Soybean Meal, Soybean Oil, Wheat, and Corn futures markets where he was both the buyer and seller to the transactions for the purpose of freshening long position dates. The Panel found that in so doing Forster violated legacy CBOT Regulation 9B.14.

PENALTY:

In accordance with the settlement offer, the Panel fined Forster $20,000 and suspended his membership privileges, including his access to any CME Group trading floor and direct access to any CME Group electronic trading or clearing platform, for 5 business days, beginning September 7, 2010, and continuing through September 13, 2010, inclusive.

EFFECTIVE DATE:

September 2, 2010