NOTICE OF DISCIPLINARY ACTION

MEMBER:

Matthew Garber

CBOT RULE VIOLATION:

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

It shall be an offense:

B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;

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 Matthew Garber (“Garber”) neither admitted nor denied the rule violation upon which the penalty is based, on November 4, 2015, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that it had jurisdiction over Garber pursuant to Rules 400 and 402 as the conduct occurred while Garber was a CBOT member. The Panel further found that from January 1, 2012, through April 30, 2012, Garber engaged in a pattern of activity wherein he entered orders for Soybean futures contracts without the intent to trade. Specifically, Garber placed a small order to sell (buy) in the futures contract market on Globex. Garber subsequently entered multiple larger-sized buy (sell) orders at various book levels at or near the best bid (offer) on Globex to create the appearance of an imbalance in buy/sell pressure. Once the small order began trading, Garber canceled the larger-sized orders for the purpose of inducing other market participants to trade against the small orders resting on the other side of the order book. The Panel concluded that Garber thereby violated CBOT Rules 432.B.2., 432.Q., and 432.T.

PENALTY:

In accordance with the settlement offer, the Panel ordered Garber to pay a fine in the amount of $40,000 and serve a 20 business day suspension from access to any CME Group Inc. trading floor and direct and indirect access to any electronic trading and clearing platform owned or operated by CME Group Inc., including CME Globex. The suspension shall run from November 30, 2015, through December 28, 2015, inclusive.

EFFECTIVE DATE:

November 6, 2015