NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 09-03228-BC

MEMBER:

BRIAN SEIMO (OPE)

CBOT RULE VIOLATIONS:

521. REQUIREMENTS FOR OPEN OUTCRY TRADES

In open outcry trading, bidding and offering practices must at all times be conducive to the competitive execution of transactions. All open outcry transactions, including spread and combination transactions, shall be made openly and competitively in the pit designated for the trading of the particular transaction. No bid or offer shall be specified for acceptance by a particular trader. Transactions may take place only at the best price available in the open outcry market at the time the trade occurs….

CBOT Rule 531—TRADING AGAINST CUSTOMERS’ ORDERS PROHIBITED (531.A.
General Prohibition)
No person in possession of a customer order shall knowingly take, directly or indirectly, the opposite side of such order for his own account, an account in which he has a direct or indirect financial interest, or an account over which he has discretionary trading authority.

FINDINGS:

Pursuant to an offer of settlement in which Brian Seimo neither admitted nor denied the facts or findings, on November 4, 2010, a Panel of the CBOT Business Conduct Committee found that on multiple occasions in April 2009 Brian Seimo executed trades with other members in the Dow Jones Index futures pit, in a manner that was not open and competitive. In addition, Brian Seimo indirectly traded opposite his customer’s orders. The Panel found that in doing so, Seimo violated CBOT Rules 521 and 531.

PENALTY:

In accordance with the settlement offer, the Panel fined Seimo $5,000 and denied his floor access and direct access to all CME Group electronic trading and clearing platforms for 6 months. The suspension shall start from the effective date of this finding until 6 months after the payment of the fine.

EFFECTIVE DATE:

November 8, 2010