NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 11-8064-BC
 

MEMBER FIRM:

RBC CAPITAL MARKETS, LLC

CBOT RULE VIOLATIONS:

(Legacy) Rule 526 Block Trades (in part)

F. 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. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.

Rule 432 General Offenses (in part)

It shall be an offense:

I. to make a verbal or written material misstatement to the Board, a committee, or Exchange employees.

FINDINGS:

Pursuant to an offer of settlement in which RBC Capital Markets, LLC (“RBC”), neither admitted nor denied the Rule violations upon which the penalty is based, on June 24, 2013, a Panel of the Chicago Board of Trade Business Conduct Committee (“Panel”) found that on November 4, 2010, RBC executed an inter-commodity spread block trade in the CBOT U.S. Treasury Note Futures contracts, and did not report the trade to the Exchange within the applicable time limit following execution. During the same time frame, RBC, through its employees, misreported to the Exchange the true and accurate time of execution of the block trade. The Panel concluded that RBC thereby violated CBOT (Legacy) Rule 526.F and Rule 432.I.

PENALTY:

In accordance with the settlement offer, the Panel fined RBC $15,000.

EFFECTIVE DATE:

June 26, 2013