NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 11-8175-BC

MEMBER:

Deutsche Bank Securities Inc.

CBOT RULE VIOLATIONS:

17107.B. Delivery Payment (in part)

Buyers obligated to accept delivery must take delivery and make Delivery Payment and sellers obligated to make delivery must make delivery before 1:00 p.m. of the day of delivery, or by such other time designated by the Clearing House, except on banking holidays when delivery must be taken or made and Delivery Payment made before 9:30 a.m. the next banking business day, or by such other time designated by the Clearing House.

FINDINGS:

Pursuant to an offer of settlement in which Deutsche Bank Securities Inc. (“DBSI”) neither admitted nor denied the rule violations upon which the penalty is based, on August 7, 2012, a Panel of the CBOT Business Conduct Committee (“Panel”) found that during the March 2011 delivery cycle, based upon intents and invoices the firm submitted to the Exchange, DBSI was a short-position holder scheduled to deliver Rough Rice receipts to multiple long-position holders stopped for delivery. However, DBSI failed to completely deliver all receipts over the electronic warehouse receipt system prior to the 1:00 PM deadline on March 2, 2011. The Panel found that in so doing, DBSI violated CBOT Rule 17107.B.

PENALTY:

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

EFFECTIVE DATE:

August 9, 2012