NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 11-08127

MEMBER:

Michael Wisnefski (STX)

CME RULE VIOLATIONS:

Rule 432. General Offenses (in part)

It shall be an offense:

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

T. to engage in dishonorable or uncommercial conduct;

FINDINGS:

Pursuant to an offer of settlement in which Michael Wisnefski neither admitted nor denied the rule violations upon which the penalty is based, on August 2, 2012, a Panel of the CME Business Conduct Committee found that on multiple occasions between January 1, 2011 and March 31, 2011, Wisnefski entered orders on the CME Globex® electronic trading platform during the pre-opening session that were not made in good faith for the purpose of executing bona fide transactions. Specifically, Wisnefski entered and subsequently canceled orders in the Random Length Lumber futures market in an attempt to identify the depth of the order book at different price levels. In attempting to discern market depth in this way, Wisnefski caused the publicly displayed Indicative Opening Price (“IOP”) to fluctuate and reflect artificial prices. The panel found that in so doing Wisnefski violated CME Rules 432.Q. and T.
 

PENALTY:

In accordance with the settlement offer, the Panel fined Wisnefski $40,000 and suspended his membership privileges, access to any CME Group trading floor, and direct access to any CME Group electronic trading or clearing platform owned or controlled by CME Group, including Globex, for 20 business days, beginning on the effective date below.

EFFECTIVE DATE:

August 6, 2012