NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 08-05036-BC

NON-MEMBER:

RON ROZILLIO

CME RULE VIOLATION:

533. SIMULTANEOUS BUY AND SELL ORDERS FOR DIFFERENT BENEFICIAL
OWNERS

….On the Globex platform, opposite orders for different beneficial owners that are simultaneously placed by a party with discretion over both accounts may be entered into the Globex platform provided that one order is exposed for a minimum of ….15 seconds in the case of options orders….

432. GENERAL OFFENSES

It shall be an offense:
***
T. to engage in …. uncommercial conduct

 

FINDINGS:

Pursuant to an offer of settlement in which Ron Rozillio neither admitted nor denied the findings and conclusions herein, on April 7, 2011, a Panel of the CME Business Conduct Committee found that from October through December 2008 Rozillio placed buy and sell e-mini Standard & Poor’s 500 Stock Price Index options orders in the Globex system, some of which matched against each other in less than 15 seconds, resulting in the movement of funds between accounts of his family members. The Panel found that in so doing, Rozillio violated CME Rules 533 and 432.T.

PENALTY:

In accordance with the settlement offer, the Panel suspended Rozillio’s direct access to any CME Group electronic trading or clearing platform for sixteen months. The suspension will run from April 11, 2011, through August 10, 2012.

EFFECTIVE DATE:

April 11, 2011