NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 11-08067-BC

MEMBER FIRM:

Newedge USA, LLC

CBOT RULE VIOLATION:

Rule 809. Trade Data Processing System

A. Trade Data

Every clearing member must submit accurate trade data for the day’s business to the Clearing House no later than the time specified by the Clearing House.

FINDINGS:

Pursuant to an offer of settlement in which Newedge USA, LLC (“Newedge”) neither admitted nor denied the rule violation upon which the penalty is based, on December 20, 2011, a Panel of the CBOT Business Conduct Committee (“Panel”) found that on January 11, 2011, Newedge, a clearing member, submitted an in-house transfer to the Clearing House (“CME Clearing”) with inaccurate trade data for an expiring contract. This reporting error originated from a give-in Newedge received with inaccurate information which then required manual handling. While attempting to correct this give-in transaction that was erroneously designated as a customer account origin, Newedge incorrectly submitted the in-house transfer to CME Clearing as January 2011 Soybean futures rather than the January 2012 contract due to a clerical typographical error. As a result, the open interest in January 2011 Soybean futures was overstated by 3,750 contracts. Due to this reporting error’s inclusion in the Daily Bulletin and on the Exchange website, CME Group was required to publish a correction, remove the open interest and rerun the Final Daily Bulletin. In so doing, Newedge failed to submit accurate trade data to CME Clearing in violation of CBOT Rule 809.A.

PENALTY:

In accordance with the settlement offer, the Panel fined Newedge $25,000.

EFFECTIVE DATE:

December 22, 2011