NOTICE OF DISCIPLINARY ACTION

FILE NO.:

07-02574-BC

MEMBER:

MARK A. LEVY (LEVY)

CME RULE VIOLATIONS:

536. RECORDKEEPING REQUIREMENTS FOR PIT, GLOBEX, AND NEGOTIATED TRADES

A. General Requirements for Open Outcry Pit Trades

….Floor brokers executing an order shall record their trading symbol, price, quantity, bracket opposite trade and clearing member…. In addition, each member must maintain, and is accountable for, all other documents on which original trade information is recorded….

515. REGISTRATION AND IDENTIFICATION OF BROKER ASSOCIATIONS

D. Supervision:

Each principal of a Revenue Sharing Association must diligently supervise the association’s member registrants and non-member employees and may be held directly liable for violations of any rule of the Exchange by such registrants and employees….

FINDINGS:

Pursuant to an offer of settlement in which Levy neither admitted nor denied the findings, on March 24, 2011, a panel of the CME Business Conduct Committee found that on several occasions in 2008, Levy, a principal of Bear Brokerage, LLC, (“Bear”) failed to accurately record trades and retain original endorsements for trades made in the Eurodollar options pit. The Panel also found that in 2008 Levy failed to properly supervise associates and clerks of his broker association for recordkeeping requirements in the Eurodollar options pit. In so doing Levy violated CME Rules 536 and 515.D.

PENALTY:

In accordance with the settlement offer, the Panel fined Levy $22,500.

EFFECTIVE DATE:

April 6, 2011