NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 11-08337-BC

MEMBER:

Noah Schwartz

CME RULE VIOLATIONS:

432. (General Offenses)
It shall be an offense:

T. To engage in uncommercial conduct

FINDINGS:

Pursuant to an offer of settlement in which Noah Schwartz (“Schwartz”) neither admitted nor denied the rule violations upon which the penalty is based, on November 26, 2012, a panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee found that on one or more occasions between May 30 and May 31, 2011, Schwartz executed trades in a user defined covered options spread by entering individual 1-lot orders to buy a covered risk reversal options spread so as to cause a short futures position to be over-allocated to him. The panel found that in doing so, Schwartz violated CBOT Rule 432.T.

PENALTY:

In accordance with the settlement offer, the Panel fined Schwartz $20,000, and suspended his membership privileges, access to the trading floor, and direct access to any CME Group electronic trading platform for 5 business days.

EFFECTIVE DATE:

November 28, 2012