NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 09-03996-BC

MEMBER:

ROBERT KOVACS
 

CBOT RULE VIOLATIONS:

Rule 576. IDENTIFICATION OF GLOBEX TERMINAL OPERATORS

Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.

(Legacy) Rule 432. GENERAL OFFENSES (in part)

It shall be an offense:

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

Y. to improperly use the Globex platform or any electronic trading or clearing platform owned or controlled by CME Group or permit the unauthorized use of such platforms;

FINDINGS:

Pursuant to an offer of settlement in which Robert Kovacs neither admitted nor denied the rule violations upon which the penalty is based, on October 16, 2012, a Panel of the CBOT Business Conduct Committee found that on numerous occasions between May and June of 2009, Kovacs permitted another person to enter buy and sell orders with and between three (3) accounts owned by him on the CME Globex® electronic trading platform using a Tag50 User ID registered to Kovacs. The Panel concluded that in so doing, Kovacs violated CBOT Rules 576, 432.B.2., and 432.Y.

PENALTY:

In accordance with the settlement offer, the Panel ordered Kovacs to pay a fine of $5,000. The Panel also barred Kovacs for a period beginning on the effective date and lasting six months from the date the fine is paid in full from applying for membership privileges on any CME Group Inc. exchange, accessing all CME Group Inc. trading floors, and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc.

EFFECTIVE DATE:

October 18, 2012