NOTICE OF DISCIPLINARY ACTION

MEMBER:

Jason Bianco

CBOT RULE VIOLATIONS:

Rule 521. Requirements for Open Outcry Trades (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 Jason Bianco (“Bianco”) neither admitted nor denied the rule violations upon which the penalty is based, on December 2, 2014, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that it had jurisdiction over Bianco pursuant to rules 400 and 402 as Bianco is a CBOT Member. The Panel further found that on three occasions between September 2012 and February 2013, while in the 10-Year Treasury Note Options pit, Bianco executed the full or a portion of customer orders, for a total of 3,950 option strategies, opposite other brokers, without bidding or offering his orders in a manner consistent with open and competitive trades. The Panel concluded that as a result of the foregoing, Bianco violated CBOT Rule 521 and Rule 539.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Bianco to pay a fine in the amount of $25,000, and to serve a suspension of 10 business days from membership privileges on any CME Group Inc. exchange, access to all CME Group Inc. trading floors and direct access to all electronic trading and clearing platforms owned or operated by CME Group Inc., including Globex. The suspension will run from December 4, 2014, and continue for a period of 10 business days from the date that the ordered fine is paid in full.