NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 08-04760-BC

NON-MEMBER:

Andre B. Halvorsen

CME RULE VIOLATION:

539. PREARRANGED, PRE-NEGOTIATED AND NON-COMPETITIVE 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 Andre Halvorsen neither admitted nor denied the rule violations upon which the penalty is based, on October 12, 2011, a panel of the CME Business Conduct Committee found that Andre Halvorsen voluntarily submitted himself to the jurisdiction of the CME Business Conduct Committee and that on September 19, 2008, Halvorsen executed a series of prohibited trades in the E-Mini Standard and Poor’s 500 Stock Price Index option contracts, which were designed to move money from one account to two other accounts. The Panel found that in so doing, Andre Halvorsen violated CME Rule 539.A.

PENALTY:

In accordance with the Offer of Settlement, the Panel fined Andre Halvorsen $7,500 and suspended his direct access to any electronic trading or clearing platform owned or operated by CME Group Inc., including CME Globex® for three months. The suspension of Halvorsen’s direct access shall not restrict his ability to liquidate positions in the account(s) he trades. Andre Halvorsen’s suspension shall run from October 14, 2011 through and including January 14, 2012.

EFFECTIVE DATE:

October 14, 2011