NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 10-05127-BC
 

NON-MEMBER:

Hornor Resources International LLC

CBOT RULE VIOLATIONS:

443. POSITION LIMIT VIOLATIONS (Legacy)

The Market Regulation Department and the BCC shall have the authority to enforce the position limit rules of the Exchange. For purposes of this rule, any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations. Additionally, any person making a bid or offer that would, if accepted, cause such person to exceed the applicable position limits shall be in violation of this rule.

FINDINGS:

Pursuant to an offer of settlement in which Hornor Resources International LLC (“Hornor”) neither admitted nor denied the rule violations upon which the penalty is based, on December 19, 2012, a panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee found that on July 29, 2010, Honor Resources held positions in excess of the spot month speculative position limit of 600 contracts in the August 2010 Soybean futures market as set forth in CBOT Rule 11102.E.2. On said date, Honor Resources exceeded the above mentioned limit by 100 contracts, or by approximately 16.67%. The Panel found that by so doing, Hornor violated legacy CBOT Rule 443.

PENALTY:

In accordance with the settlement offer, the Panel ordered Hornor Resources International, LLC to pay a fine of $15,000.

EFFECTIVE DATE:

December 21, 2012