NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 08-05039-BC

MEMBER:

WILLIAM T. SCHULTZ (YRU)

CME RULE VIOLATION:

Rule 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…. Transactions may take place only at the best price available in the open outcry market at the time the trade occurs.

FINDINGS:

Pursuant to an offer of settlement in which William Schultz 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 on October 24, 2008, Schultz non-competitively executed a trade opposite another member in the Standard & Poor’s 500 Stock Price Index futures pit. The Panel concluded that in so doing, Schultz violated CME Rule 521.

PENALTY:

In accordance with the settlement offer, the Panel fined Schultz $2,500 and suspended his membership privileges, access to any CME Group trading floor, and direct access to any CME Group electronic trading or clearing platform for 10 business days from October 14, 20011, through October 27, 2011, inclusive.

EFFECTIVE DATE:

October 14, 2011