NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 09-06303-BC
CBOT 11-8047-BC
CBOT 11-8186-BC

MEMBER:

BARCLAYS CAPITAL, INC.

CBOT RULE VIOLATION:

526.F. BLOCK TRADES

The seller must ensure that each block trade is reported to the Exchange within five minutes of the time of execution; except that block trades in interest rate futures and options executed outside of Regular Trading Hours (7:00 a.m. – 4:00 p.m. Central Time, Monday – Friday on regular business days) must be reported within fifteen minutes of the time of execution.

FINDINGS:

Pursuant to an offer of settlement in which Barclays Capital, Inc. neither admitted nor denied the findings and conclusions herein, on March 23, 2011, a Panel of the CBOT Business Conduct Committee found that on January 4, 2010, Barclays executed a 5,000 lot block trade in the March 2010 10-Year U.S. Treasury Note futures that met the minimum quantity threshold for block trades and appeared to have been executed at a fair and reasonable price, however this trade was inadvertently never reported to the Exchange as required by CBOT Rule 526.F.

The Panel further found that on October 28, 2010, Barclays executed a 7,228 lot block trade in the December 2010 10-Year U.S. Treasury Note futures that met the minimum quantity threshold for block trades and appeared to have been executed at a fair and reasonable price, however this trade was inadvertently reported late to the Exchange.

The Panel further found that on February 22, 2011, Barclays executed a 5,000 lot block trade in the March 2011 5-Year U.S. Treasury Note futures that met the minimum quantity threshold for block trades and appeared to have been executed at a fair and reasonable price, however this trade was inadvertently reported late to the Exchange.

The Panel found that in so doing Barclays violated CBOT Rule 526.F.

PENALTY:

In accordance with the settlement offer, the Panel fined Barclays $45,000.

EFFECTIVE DATE:

March 25, 2011