NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 11-8063-BC

NON-MEMBER:

ANDREW SARUSSI
 

CME RULE VIOLATION:

RULE 432 GENERAL OFFENSES (in part)

It shall be an offense:

T. to engage in dishonorable or uncommercial conduct.

RULE 576 IDENTIFICATION OF GLOBEX TERMINAL OPERATORS

Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of by an individual using a user ID other than the individual’s own unique user ID.

FINDINGS:

Pursuant to an offer of settlement in which Andrew Sarussi neither admitted nor denied the rule violation upon which the penalty is based, on June 26, 2013, a Panel of the CME Business Conduct Committee (the “Panel”) found that Sarussi voluntarily submitted himself to the jurisdiction of the Business Conduct Committee for the purposes of settling this matter, and on November 19, 2010, Sarussi executed trades on the Globex electronic trading platform in a user defined covered options spread in which he purchased 16 one-lot buy orders in the December 2010 E-mini Standard & Poor’s 500 Stock Price Index options contract, resulting in the under-allocation of futures that should have been associated with the covered instrument. In addition, the Panel found that during Sarussi used another individual’s Globex user ID (“TAG 50”) to enter orders on Globex. The Panel found that in so doing, Sarussi violated CME Rules 432.T. and 576.

PENALTY:

In accordance with the settlement offer, the Panel ordered Sarussi to pay a fine of $30,000.

EFFECTIVE DATE:

June 28, 2013