NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 09-03391-BC

MEMBER:

TRANSMARKET GROUP LLC
 

CBOT RULE VIOLATION:

RULE 443. POSITION LIMIT VIOLATIONS (in part) (Legacy)

The Market Regulation Department and the BCC shall have the authority to enforce the position limit rules of the Exchange. For purposes of this rule, any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations. Additionally, any person making a bid or offer that would, if accepted, cause such person to exceed the applicable position limits shall be in violation of this rule.

FINDINGS:

Pursuant to an offer of settlement in which TransMarket Group LLC (“TransMarket”) neither admitted nor denied any rule violation upon which the penalty is based, on November 28, 2012, a Panel of the CBOT Business Conduct Committee (“Panel”) found that on March 16, 2009, proprietary traders at TransMarket exceeded the 6,500 single contract month position limit in May 2009 Soybean Oil futures contract as part of a futures spread within a crop year by 3,948 contracts or 62%. The Panel found that in so doing, TransMarket violated Legacy CBOT Rule 443.

PENALTY:

In accordance with the settlement offer, the Panel ordered TransMarket to pay a fine of $40,000.

EFFECTIVE DATE:

January 8, 2013