NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 08-01861-BC

NON-MEMBER:

JOSEPH MONGE

CBOT RULE VIOLATION:

Rule 432. (General Offenses)

It shall be an offense:

Q. to engage in dishonorable or uncommercial conduct

FINDINGS:

Pursuant to an offer of settlement in which Joseph Monge 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 entered findings based on allegations that Monge, on May 8, 2008, executed several trades in the June 2008 10-Year U.S. Treasury Note User Defined covered call spread market on the CME Globex electronic trading platform, wherein he entered orders with small enough quantities to not be allocated futures on the covered calls. In total, Monge caused 272 June 2008 10-Year U.S. Treasury Note 116 ½ - 117 call spreads covered against June 2008 115.23 futures to be executed without futures being allocated. The Panel found that the alleged conduct violated CBOT Rule 432.Q. (To Engage in Uncommercial Conduct).

PENALTY:

In accordance with the settlement offer and upon considering Monge’s cooperation with the Exchange and evidence that there were no discernable profits realized by Monge in executing these trades, the Panel fined Monge $15,000.
 

EFFECTIVE DATE:

September 2, 2010