NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 09-06429-BC
 

MEMBER:

THOMAS D. JOHNSON (BSD)

CME RULE VIOLATIONS:

532. Disclosing Orders Prohibited
No person shall disclose another person's order to buy or sell except to a designated Exchange official or the CFTC, and no person shall solicit or induce another person to disclose order information. An order for pit execution is not considered public until it has been bid or offered by open outcry. No person shall take action or direct another to take action based on non-public order information, however acquired. The mere statement of opinions or indications of the price at which a market may open or resume trading does not constitute a violation of this rule.

529. Withholding Orders Prohibited
A Member (as defined in Rule 400), or any person entering orders on the Globex® platform, shall not withhold or withdraw from the market any order, or any part of an order, for the benefit of any person other than the person placing the order.

FINDINGS:

Pursuant to an offer of settlement in which Thomas D. Johnson (“Johnson”) neither admitted nor denied the rule violations upon which the penalty is based, on March 29, 2012, a Panel of the CME Business Conduct Committee found that on February 20, 2009, Johnson withheld his customer’s order from the market place until after he had disclosed the terms of said order information to another market participant. Additionally, on March 2, 2009, Johnson disclosed the terms of his customers order to another market participant prior to the order being exposed to the rest of the marketplace. The Panel found that in so doing, Johnson violated CME Rules 529 and 532.

PENALTY:

In accordance with the offer of settlement, the Panel fined Johnson $10,000 and suspended his membership privileges, access to the trading floor and his direct access to any electronic trading or clearing platform owned or controlled by CME Group 10 business days, beginning on the effective date below.

EFFECTIVE DATE:

April 2, 2012