NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 09-06184-BC

NON MEMBER:

BRIAN NELSON

CME RULE VIOLATION:

(Legacy) Rule 432 General Offenses (in part)

It shall be an offense:

L.3. …to fail to appear at a scheduled staff interview.

FINDINGS:

On November 12, 2012, a Panel of the Chicago Mercantile Exchange (“CME”) Probable Cause Committee (“PCC”) charged non-member Brian Nelson with one count of violating CME Rule 432.L.3. based on the allegation that he failed to appear for a scheduled staff interview

On March 14, 2013, a Hearing Panel Chair of the CME Business Conduct Committee (“BCC”) entered an order finding that Nelson failed to answer the charge issued against him. In failing to answer the charge, the Hearing Panel Chair further ordered that Nelson was deemed to have admitted the charge issued and waived his right to a hearing on the merits of the charge.

Pursuant to CME Rule 407.C., a penalty hearing was held before a Panel of the CME BCC (“BCC Panel”) on May 2, 2013. The BCC Panel found Nelson guilty of committing the admitted charges. In particular, the Panel found that Nelson failed to appear at a scheduled interview with Market Regulation, which materially impacted Market Regulation’s investigation into potential rule violations.

PENALTY:

Based on the record and the Panel’s findings and conclusions, the Panel ordered that Nelson be suspended from (1) applying for membership at any exchange owned, controlled or operated by CME Group, (2) accessing any CME Group trading floor, and (3) directly or indirectly accessing any CME Group owned trading or clearing platform for one year, beginning on the effective date below.

EFFECTIVE DATE:

June 17, 2013