NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 10-07130-BC & CBOT 09-03744-BC

MEMBER:

DB COMMODITY SERVICES, LLC.

CBOT AND CME RULE VIOLATIONS:

443. POSITION LIMIT VIOLATIONS

The Market Regulation Department and the BCC shall have the authority to enforce the position limit rules of the Exchange. For purposes of this rule, any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations. Additionally, any person making a bid or offer that would, if accepted, cause such person to exceed the applicable position limits shall be in violation of this rule… .

FINDINGS:

Pursuant to an offer of settlement in which DB Commodity Services, LLC neither admitted nor denied the findings and conclusions herein, on August 11, 2010, a panel of the CME/CBOT Business Conduct Committee found that on June 2, 2009, DBCS held 11,007 long Wheat futures contracts, exceeding their hedge levels as set forth in CBOT Rule 559 by 7 futures contracts, in violation of CBOT Rule 443. Additionally, on May 5, 2010, DBCS held positions in excess of the single month speculative position limit of 4100 contracts as set forth in CME Rule 15201.E.2 in the July 2010 Lean Hog futures market. On said date, DBCS exceeded the above mentioned limit by 32 futures contracts. The panel found that in doing so, DBCS violated CME Rule 443 and CBOT Rule 443.

PENALTY:

In accordance with the settlement offer, the Panel fined DB Commodity Services $7,500 for the CBOT rule violation and $7,500 for the CME rule violation, totaling $15,000.00
 

EFFECTIVE DATE:

August 13, 2010