NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 09-05561-BC

NON-MEMBER:

GUILHERME B. MONTEIRO

CME RULES:

432. GENERAL OFFENSES

It shall be an offense:

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

539. PREARRANGED, PRE-NEGOTIATED AND NONCOMPETITIVE
TRADES PROHIBITED

A. General Prohibition

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 Guilherme Monteiro neither admitted nor denied the findings, on December 7, 2010, a Panel of the CME Business Conduct Committee found that from January through October 2009, Monteiro executed numerous noncompetitive trades for his personal account opposite an account owned by his employer and traded by Monteiro for the purpose of moving money from the employer’s account to his personal account. Monteiro also engaged in noncompetitive trading in which he used the employer’s account to give himself advantageous prices on trades for his personal account. The Panel found that in doing so, Montiero violated CME Rules 432.B. and 539.A.

PENALTY:

In accordance with the settlement offer, the Panel fined Monteiro $110,000, which included an order to pay restitution and disgorgement in the amount of $47,326, and suspended him from having any access all CME Group electronic trading and clearing platforms for six months. The suspension will run from December 9, 2010, through June 9, 2011, inclusive.

EFFECTIVE DATE:

December 9, 2010