NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 09-03902-BC

MEMBER:

ANTHONY ANAYA, JR.

CBOT RULE VIOLATION:

(legacy) Rule 534. Wash Trades Prohibited (in effect through November 2, 2009)

No person shall place for the same beneficial owner buy and sell orders for the same product and expiration month, and, for a put or call option, the same strike price, at or about the same time with the intent to avoid a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders placed for the same beneficial owner in the same product and expiration month, and, for a put or call option, the same strike price, must be entered in good faith for the purpose of executing bona fide transactions that result in a change of ownership. Additionally, no person shall accept, execute or accommodate the execution of orders which are prohibited by this rule with knowledge of their character.

Rule 534. Wash Trades Prohibited (in effect from November 3, 2009)

No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

FINDINGS:

Pursuant to an offer of settlement in which Anthony Anaya, Jr. neither admitted nor denied the rule violation upon which the penalty is based, on May 12, 2011, a Panel of the CBOT Business Conduct Committee found that on several occasions between April 29 and May 1, 2009, Anaya executed trades in the May 2009 Wheat futures market on the CME Globex electronic trading platform (“Globex”) where his account was on both the sell and buy sides of each transaction resulting in no change in beneficial ownership. Anaya’s purpose in executing these transactions was to freshen his long Wheat futures position dates. The Panel concluded that in so doing, Anaya violated legacy CBOT Rule 534.

The Panel further found that on several occasions between March 1 and March 10, 2010, Anaya executed trades in the March 2010 Corn futures market on Globex where his account was on both the sell and buy sides of each transaction resulting in no change in beneficial ownership. Anaya’s purpose in executing these transactions was to freshen his long Corn futures position dates. The Panel concluded that in so doing, Anaya violated CBOT Rule 534.

PENALTY:

In accordance with the settlement offer and in consideration of other factors in mitigation, the Panel fined Anaya $15,000. The Panel also suspended Anaya’s membership privileges, access to any CME Group trading floor, and direct access to any CME Group electronic trading or clearing platform for 5 business days beginning on the effective date below and continuing through and including May 20, 2011.

EFFECTIVE DATE:

May 16, 2011