NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 08-04250-BC

NON-MEMBER:

GARY WILKS

CME RULE VIOLATIONS:

Rule 432. General Offenses (in part)

It shall be a violation:

B. to engage in fraud, bad faith, or in conduct or proceedings inconsistent with just and equitable principles of trade;

C. to engage in dishonest conduct.

Rule 539. General Prohibition

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 non-member Gary Wilks (“Wilks”) neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the CME Business Conduct Committee (“BCC”) found that from February 1, 2008 through October 31, 2008, while controlling accounts for his employer, Daisy Brand LLC, Wilks executed a series of noncompetitive trades for his personal account opposite his employer’s account in a manner designed to allow Wilks to profit at Daisy Brand’s expense. Wilks either used Daisy Brand’s account to establish or offset a trade at a price that allowed him to profit, or executed round-turn trades with Daisy Brand’s accounts resulting in a movement of money to Wilks’ personal account. The BCC found that in so doing, Wilks violated CME Rule 432.B., Rule 432.C., and Rule 539.A.

PENALTY:

In accordance with the settlement offer and in consideration of the fact that Wilks recompensed Daisy Brand nearly $80,000 on his own accord, the BCC permanently barred Wilks from: applying for membership at any CME Group exchange; directly or indirectly accessing, using, or entering orders on any electronic trading or clearing platform owned or operated by CME Group; accessing any trading floor owned or operated by any CME Group exchange; and affiliating with or being employed by any Member, as defined by CME Rule 400.

EFFECTIVE DATE:

February 1, 2012