NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT 13-9216-BC

MEMBER:

DENNIS J. SCHWARTZ

CBOT RULE VIOLATION:

Rule 562. Position Limit Violations (In part)

Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations. Additionally, any person making a bid or offer that would, if accepted, cause such a person to exceed the applicable position limits shall be in violation of this rule.

FINDINGS:

Pursuant to an offer of settlement in which Dennis J. Schwartz (“Schwartz”) neither admitted nor denied the rule violation upon which the penalty is based, on February 11, 2014, a Panel of the CBOT Business Conduct Committee found that, on December 31, 2012, while trading in the January 2013 Soybean Oil futures, Schwartz exceeded the spot month speculative position limit of 540 contracts by 230 contracts, or approximately 42.6%. Schwartz reduced his position to a permissible level by 1:52 PM on the same trade date. The Panel concluded that Schwartz thereby violated CBOT Rule 562 (Position Limit Violations).

PENALTY:

In accordance with the settlement offer, the Panel ordered Schwartz to pay a fine of $10,000 and barred Schwartz from reapplying for membership privileges on any CME Group Inc. exchange, accessing all CME Group Inc. trading floors, and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. for 20 business days, beginning on February 13, 2014, and continuing through and including March 12, 2014.

EFFECTIVE DATE:

February 13, 2014