NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 09-03559-BC 

 

MEMBER:

JOSH KIRLEY (KIR)

CBOT RULE VIOLATIONS:

Rule 539. – PREARRANGED, PRE-NEGOTIATED, AND NONCOMPETITIVE  TRADES PROHIBITED (in part)

A. No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction….

(legacy) Rule 432. – GENERAL OFFENSES

It shall be an offense:

B. to engage in … conduct or proceedings inconsistent with just and equitable principles of trade.

FINDINGS:

Pursuant to an offer of settlement in which Josh Kirley (“Kirley”) neither admitted nor denied the rule violations upon which the penalty is based, on July 2, 2012 a Panel of the CBOT Business Conduct Committee (the “Panel”) found that on eight (8) occasions from April 27 through June 10, 2009, while trading in the Wheat futures pit, Kirley engaged in noncompetitive trades of Wheat futures.

The Panel found that in so doing, Kirley violated CBOT Rule 539.A. and (legacy) CBOT Rule 432.B.

PENALTY:

In accordance with the settlement offer, the Panel ordered Kirley to (i) pay a fine of $30,000; and (ii) serve a ten (10) business day suspension of his 1) membership privileges; 2) access to any CME Group Inc. trading floors, and 3) direct access to all electronic trading and clearing platforms owned or controlled by CME Group, including CME Globex. The suspension shall run from July 5, 2012 through July 18, 2012, inclusive.

EFFECTIVE DATE:

July 5, 2012