NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

David Bird

CBOT RULE VIOLATION:

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

It shall be an offense:

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. 

Rule 575. Disruptive Practices Prohibited (in part)

All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution;

D. No person shall enter or cause to be entered an actionable or non-actionable message with intent to disrupt, or with reckless disregard for the adverse impact on, the orderly conduct of trading or the fair execution of transactions.

FINDINGS:

Pursuant to an offer of settlement in which David Bird neither admitted nor denied the rule violations upon which the penalty is based, on June 21, 2016, a Panel of the CBOT Business Conduct Committee found that it had jurisdiction over Bird pursuant to Rules 402 and 418, and that on one or more occasions between October 1, 2013, and June 4, 2015, Bird entered orders in various Agricultural contracts on the Globex electronic trading platform during the pre-opening period for the purpose of identifying the depth of the order book. The entry and cancellation of these orders caused fluctuations in the publicly displayed Indicative Opening Price. The Panel concluded that Bird thereby violated CBOT Rules 432.Q and 432.T with respect to his conduct from October 1, 2013, to September 14, 2014, and Rules 575.A and 575.D for his conduct from September 15, 2014, to June 4, 2015.

PENALTY:

In accordance with the settlement offer, the Panel ordered Bird to pay a fine of $15,000. The Panel also suspended Bird from accessing any CME Group Inc. trading floor, and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., for 40 days, beginning on the effective date below and continuing through and including July 31, 2016.

EFFECTIVE DATE:

June 23, 2016