NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 11-8377-BC
 

NON-MEMBER FIRM:

Louis Dreyfus Energy Services L.P.

CME RULE VIOLATIONS:

(Legacy) Rule 526. Block Trades (in part)

F. The seller must ensure that each block trade is reported to the
Exchange within five minutes of the time of execution; except that block trades in interest rate futures and options executed outside of Regular Trading Hours (7:00 a.m. – 4:00 p.m. Central Time, Monday – Friday on regular business days) and Housing and Weather futures and options must be reported within fifteen minutes of the time of execution. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.

FINDINGS:

Pursuant to an offer of settlement in which Louis Dreyfus Energy Services L.P., now doing business as Castleton Commodities Merchant Trading L.P. (“LDES”), neither admitted nor denied the Rule violation upon which the penalty is based, and after LDES voluntarily submitted itself to the jurisdiction of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“BCC”) for
purposes of settling this matter, on May 7, 2013, a Panel of the CME BCC (“Panel”) found that on May 16, 2011, LDES executed a block trade in a CME Cooling-Degree-Days Index Futures contract, and did not report the trade to the Exchange within the applicable time limit following execution. The Panel concluded that LDES thereby violated CME Rule 526.F.

PENALTY:

In accordance with the settlement offer, the Panel fined LDES $15,000.

EFFECTIVE DATE:

May 9, 2013