NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 11-08693-BC

NON MEMBER FIRM:

Highbridge Capital Management, LLC

CME RULE VIOLATIONS:

Rule 562. Position Limit Violations (In part)

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 a person to exceed the applicable position limits shall be in violation of this rule.

FINDINGS:

Pursuant to an offer of settlement in which Highbridge Capital Management, LLC (“HCM”) neither admitted nor denied the rule violation upon which the penalty is based and after voluntarily submitting itself to the jurisdiction of the Exchange for purposes of resolving this matter, on April 24, 2013, a Panel of the CME Business Conduct Committee found that, on December 20, 2011, while trading in the February 2012 Lean Hog futures contract, HCM exceeded the speculative position limit in a single month of 4,150 contracts by 96 contracts or approximately 2.31% as a result of HCM inadvertently failing to aggregate positions held in different accounts. HCM promptly self-liquidated the excess contract positions on December 21, 2011, upon discovering the excess. The Panel found that by exceeding the position limit on December 20, 2011, HCM violated CME Rule 562.

PENALTY:

In accordance with the settlement offer, the Panel ordered HCM to pay a fine of
$10,000 and disgorgement of $27,280.

EFFECTIVE DATE:

April 26, 2013