NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 11-8569-BC

MEMBER:

John Brogan Jr.

CBOT RULE VIOLATIONS:

Rule 432 (“General Offenses”) (in part)

It shall be an offense:

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

T. to engage in dishonorable or uncommercial conduct.

FINDINGS:

Pursuant to an offer of settlement in which John Brogan Jr. (“Brogan”) neither admitted nor denied the rule violations upon which the penalty is based, on September 18, 2014, a Panel of the CBOT Business Conduct Committee found that it had jurisdiction over Brogan pursuant to Rules 400 and 402 as the conduct occurred while Brogan was a CBOT member, and that on one or more occasions between August 1, 2011, and September 21, 2011, Brogan entered orders in various Agricultural contracts on the Globex electronic trading platform during the pre-opening session that were not made in good faith for the purpose of executing bona fide transactions. The entry and subsequent cancelation of these orders caused fluctuations in the publicly displayed Indicative Opening Price (“IOP”). The Panel concluded that Brogan thereby violated CBOT Rules 432.Q and 432.T.

PENALTY:

In accordance with the settlement offer, the Panel ordered Brogan to pay a fine of $25,000. The Panel also barred Brogan from membership privileges, accessing any CME Group Inc. trading floor, and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. for 10 business days, beginning on the effective date below.

EFFECTIVE DATE:

September 22, 2014