NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 12-9129-BC

MEMBER:

David L. Craig

CBOT RULE VIOLATION:

Rule 521 (“Trading Practices”)(in part)

In open outcry trading, bidding and offering practices must at all times be conducive to the competitive execution of transactions. All open outcry transactions, including spread and combination transactions, shall be made openly and competitively in the pit designated for the trading of the particular transaction. No bid or offer shall be specified for acceptance by a particular trader. Transactions may take place only at the best price available in the open outcry market at the time the trade occurs.

Rule 539. Prearranged, pre-negotiated and noncompetitive trades prohibited (in part)

A. General Prohibition

No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.

FINDINGS:

Pursuant to an offer of settlement in which David L. Craig (“Craig”) neither admitted nor denied the rule violations upon which the penalty is based, on August 19, 2014, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that it had jurisdiction over Craig pursuant to Rules 400 and 402 as the conduct occurred while Craig was a CBOT member, and that on one or more occasions between February 13, 2012, and June 29, 2012, Craig engaged in Corn futures trades opposite a broker that had not been executed by open outcry. Specifically, although Craig and the broker did not bid or offer openly to the pit, Craig recorded equal-quantity buys and sells that later cleared in Craig’s account opposite the broker on two trade dates. Craig realized $850 in profits as a result of the trades. The Panel concluded that Craig thereby violated CBOT Rules 521 and 539.

PENALTY:

In accordance with the settlement offer, the Panel ordered Craig to pay a fine of $5,000 and disgorge $850.00 in profit. The Panel also suspended Craig for a period beginning on the effective date lasting 10 business days 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. The suspension shall run from August 21, 2014, through and including September 4, 2014.

EFFECTIVE DATE:

August 21, 2014