NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 09-06292-BC

NON-MEMBER:

OVID VALENTIN
 

CME RULE VIOLATIONS:

539. Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited

C. Pre-Execution Communications Regarding Globex TradesParties may engage in pre-execution communications with regard to transactions executed on the Globex platform where one party (the first party) wishes to be assured that a contra party (the second party) will take the opposite side of the order under the following circumstances:

(2.) Parties to pre-execution communications shall not (i) disclose to a non­ party the details of such communications or (ii) enter an order to take advantage of information conveyed during such communications except in accordance with this rule.

FINDINGS:

Pursuant to an offer of settlement in which Ovid Valentin ("Valentin") neither admitted nor denied the rule violations upon which the penalty is based, on March 22, 2012, a panel of the CME Business Conduct Committee found that on one or more occasions between April 7, 2010 and April 27, 2010, Valentin entered an order and subsequently traded to take advantage of information conveyed during pre-execution communications with a broker. The Panel found that in doing so, Valentin violated CME Rule 539.C.2.

PENALTY:

In accordance with the offer of settlement, the Panel fined Ovid Valentin $60,000 and suspended his direct access to any CME Group electronic trading or clearing platform for 20 business days, beginning on the effective date below and continuing through and including April 20, 2012.

EFFECTIVE DATE:

March 26, 2012