FILE NO.:
CBOT 12-8782-BC
NON-MEMBER:
Kenneth Bell
CBOT RULE VIOLATION:
Rule 432. General Offenses
It shall be an offense:
W. for a Member to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
FINDINGS:
Pursuant to an offer of settlement in which Kenneth Bell neither admitted nor denied the rule violations upon which the penalty is based, and after Kenneth Bell voluntarily submitted himself to the BCC’s jurisdiction for purposes of settling this matter, on December 6, 2013, a Panel of the CBOT Business Conduct Committee found that on August 5, 2011, an automated execution trade system programmed by a contractor employed by Kenneth Bell’s trading firm, Bell Trading, malfunctioned and executed numerous unintended self-match trades over a two-minute period in the September 2011 Five-Year Note Treasury futures contact. The contractor had failed to ensure that the appropriate checks and balances were included in the system’s code. The Panel concluded that Kenneth Bell violated CBOT Rule 432.W.
PENALTY:
In accordance with the settlement offer, the Panel barred Kenneth Bell for a ten day period from accessing all CME Group Inc. trading floors, and indirect and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc.
EFFECTIVE DATE:
December 19, 2013