NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 08-00168-BC

NON-MEMBER:

Greg Tracey

CME RULE VIOLATION:

Rule 539. Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited
(in part)

A. General Prohibition

No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction, except in accordance with Sections B. (Block Trades and EFP Transactions) and C. (Pre-Execution Communications Regarding Globex Trades in Interest Rate, Ethanol and Dow Options). . .

FINDINGS:

On September 1, 2011, a panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“BCC”) took disciplinary action against Greg Tracey, a former clerk to a CBOT member on the trading floor. On July 26, 2011, a Hearing Panel Chair of the CBOT BCC found that Tracey had failed to file an answer to a single charge issued against him by a panel of the CBOT Probable Cause Committee. The Hearing Panel Chair accordingly ruled that the charges issued against Tracey were deemed admitted, and through this admission, Tracey had forfeited his right to a hearing on the merits of the charge. Pursuant to CBOT Rules 407 and 408, a penalty hearing was held before a Panel of the CBOT BCC (“Panel”) related to this admitted charge. The Panel found Tracey guilty of participating in or facilitating the prearrangement and noncompetitive execution of four customer orders between September 10 and 18, 2008, in the Dow Jones Industrial Average Index futures pit.

In doing so, Greg Tracey violated CBOT Rule 539.A.

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel fined Tracey $50,000 and ordered that Tracey be barred for a period of four years from: (1) applying for membership at any exchange owned, controlled, or operated by CME Group Inc.; (2) affiliating with any exchange Member, as defined in CBOT Rule 400, related to business conducted on or subject to the rules of the exchange; (3) directly or indirectly accessing, placing orders, or executing trades on any trading or clearing platform owned, controlled, or operated by CME Group Inc., including, but not limited to, the CME Globex electronic trading platform; and (4) accessing any trading floor owned or controlled by CME Group Inc.

EFFECTIVE DATE:

October 5, 2011