NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 10-04868-BC

MEMBER:

Matthew J. Maloney (MJ)
 

CBOT RULE VIOLATIONS:

Rule 532. Disclosing Orders Prohibited

No person shall disclose another person's order to buy or sell except to a designated Exchange official or the CFTC . . . An order for pit execution is not considered public until it has been bid or offered by open outcry. No person shall take action or direct another to take action based on non-public order information, however acquired.

RULE 539.A Prearranged, Pre-Negotiated And Noncompetitive Trades
Prohibited (in part)

A. General Prohibition

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

FINDINGS:

Pursuant to an offer of settlement in which Matthew J. Maloney (“Maloney”) neither admitted nor denied the rule violations upon which the penalty is based, on May 2, 2013, a Panel of the CBOT Business Conduct Committee found that between April and August of 2010, Maloney engaged in Corn futures trades for customer orders opposite a local that had not been executed by open outcry. In several of these instances, Maloney disclosed his non-public orders to said local. The Panel concluded that in so doing, Maloney violated CBOT Rules 532 and
539.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Maloney to pay a fine of $30,000. The Panel also barred Maloney for a period beginning on the effective date and lasting fifteen business days from accessing all CME Group Inc. trading floors, and indirect and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc.

EFFECTIVE DATE:

May 6, 2013