NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 08-00014-BC

FORMER MEMBER:

GENE GRYZ (GMG)

CBOT RULE VIOLATIONS:

521. PIT TRADING

Bidding and offering practices must at all times be conducive to the competitive execution of transactions. All pit transactions, including spread and combination transactions, shall be made openly and competitively in the pit designated for the trading of the particular transaction.

576. IDENTIFICATION OF GLOBEX TERMINAL OPERATORS

Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

FINDINGS:

Pursuant to an offer of settlement in which Gene Gryz neither admitted nor denied the facts or findings, on April 14, 2010, a Panel of the CBOT Business Conduct Committee found that on multiple occasions in June 2008 Gryz executed trades with other members in the Dow Jones Index futures pit, who used to be part of the same brokerage group as him, in a manner that was not open and competitive. Also on those dates, Gryz permitted another member to use his registered Tag 50 to place trades on the CME Globex electronic trading platform. The Panel found that in doing so Gryz violated CBOT Rules 521 and 576.

PENALTY:

In accordance with the settlement offer, the Panel fined Gryz $2,000, denied his direct access to all CME Group electronic trading and clearing platforms for 10 business days, and prohibited him from reapplying for membership for a period of 30 calendar days from the date the fine is paid in full.

EFFECTIVE DATE:

April 16, 2010