NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 09-05275-BC

MEMBER:

ANTHONY GIORANGO (TKG)

CME RULES:

530 PRIORITY OF CUSTOMER ORDERS

A member shall not buy (sell) a futures contract…for his own account ...when he is in possession of any executable order to buy (sell) a futures contract….for another.

531 TRADING AGAINST CUSTOMER ORDERS PROHIBITED

A. General Prohibition

No person in possession of a customer order shall knowingly take, directly or indirectly, the opposite side of such order for his own account….

576 IDENTIFICATION OF GLOBEX TERMINAL OPERATORS

...Each individual must use a unique ID to access Globex. In no event may a person enter an order…using a user ID other than the individual’s own unique user ID.

FINDINGS:

Pursuant to an offer of settlement in which Anthony Giorango neither admitted nor denied the findings, on August 4, 2010, a Panel of the CME Business Conduct Committee found that on multiple occasions in 2008 and 2009, while in the S & P 500 options pit, Giorango received customers’ executable orders to buy or sell S & P options and before executing those orders, placed an order to buy or sell e-mini S&P options contracts for his personal trading account on a Galax-C handheld unit that was already logged onto with another member’s ID and then indirectly traded against his customer orders. The Panel found that in doing so, Giorango violated CME Rules 530, 531.A. and 576.

PENALTY:

In accordance with the settlement offer, the Panel fined Giorango $30,000, ordered him to pay disgorgement in the amount of $5,300, and suspended his membership privileges, access to the floor of any CME Group Exchange and having direct access to all CME Group electronic trading and clearing platforms for 35 business days. The suspension will run from August 9, 2010, through September 27, 2010, inclusive.

EFFECTIVE DATE:

August 6, 2010