NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 07-02425-BC

MEMBER:

David Springer (DZS)

CME RULE VIOLATIONS:

521. REQUIREMENTS FOR OPEN OUTCRY TRADES

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.

539. PREARRANGED, PRE-NEGOTIATED AND NONCOMPETITIVE TRADES PROHIBITED

A. 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 Springer (DZS) neither admitted nor denied any rule violations upon which the penalty is based, on October 12, 2011, a panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee found that on one or more occasions between November 29, 2007 and December 31, 2007, while in possession of open and cash close orders in the Standard & Poor’s 500 Stock Price Index futures pit, Springer executed customer orders without bidding or offering both sides of his orders openly and competitively in the trading pit. The panel found that in doing so, David Springer violated CME Rules 521 and 539.A.

PENALTY:

In accordance with the offer of settlement, the Panel fined Springer $15,000 and suspended his membership privileges, access to any trading floor and direct access to any electronic trading or clearing platform owned or operated by CME Group, including CME Globex® for 15 business days. Springer’s suspension shall run from October 14, 2011 through and including November 4, 2011.
 

EFFECTIVE DATE:

October 14, 2011