NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 06-27375-BC

MEMBER:

GEORGE SERELEAS (GSD)

(LEGACY) CME RULES:

530. Priority of Customer Orders

A member shall not buy (sell) a futures contract…for his own account ….when he is in possession of any executable order to buy (sell) a futures contract….for another.

432. Major Offenses

It shall be a major offense:
…
Q. to commit an act which is substantially detrimental to the interest or welfare of the Exchange.

FINDINGS:

Pursuant to an offer of settlement in which George Sereleas neither admitted nor denied the findings, on March 23, 2010, a Panel of the CME Business Conduct Committee found that on multiple occasions in 2006, while in the Russell 2000® Stock Price Index futures pit, Sereleas received customers’ executable orders to buy or sell Russell futures and before executing those orders, placed an order to buy or sell e-mini Russell futures contracts for his personal trading account, indirectly traded against his customer orders and engaged in noncompetitive trading, failed to take adequate measures to prevent other members in the pit form overhearing orders being communicated to him by his clerks and on one occasion, appeared to disclose his customer order to another member. The Panel found that in doing so, Sereleas violated legacy CME Rule 530, a major offense and 432.Q., a major offense.

PENALTY:

In accordance with the settlement offer, the Panel fined Sereleas $60,000, ordered him to pay disgorgement in the amount of $9,150.00, and suspended his membership privileges, access to the floor of any CME Group Exchange and having direct access to all CME Group electronic trading and clearing platforms for 40 business days. The suspension will run from March 25, 2010, through May 20, 2010, inclusive.

EFFECTIVE DATE:

March 25, 2010