NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 10-07268-BC

NON-MEMBER:

Newedge Group Paris Branch

CME RULE VIOLATIONS:

432. General Offences
W. It shall be an offense: for a Member to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.

 

FINDINGS:

Pursuant to an offer of settlement in which Newedge Group Paris Branch neither admitted nor denied the rule violations upon which the penalty is based, on September 24, 2012, a Panel of the CME Business Conduct Committee found that pursuant to CME Rule 400, the BCC maintains jurisdiction over Newedge Group Paris Branch (“Newedge Paris”) because Newedge Paris is an affiliate of a clearing member firm and is therefore, a Member. The Panel further found that on several occasions between February 2010 and March 2011, certain Newedge Paris employees entered buy and sell orders on the CME Globex electronic trading platform in a manner that did not allow for exposure of the first order for the prescribed 5 seconds in the case of futures orders, and 15 seconds in the case of options orders, before entry of the second order.

Additionally, the Panel found that during the relevant time period, Newedge Paris had issued warning letters to some of its employees as a result of the above described conduct, despite that, some of the employees continued to engage in the similar violative activity described above. The Panel therefore, found that Newedge Paris violated CME 432.W

PENALTY:

In accordance with the offer of settlement, the Panel fined Newedge Group Paris Branch $125,000.

EFFECTIVE DATE:

September 26, 2012