NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 11-8391-BC

MEMBER:

STANISLAV GOVOROV
 

CBOT RULE VIOLATIONS:

RULE 432 GENERAL OFFENSES (in part)

It shall be an offense:

G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.

RULE 539.A PREARRANGED, PRE-NEGOTIATED AND NONCOMPETITIVE TRADES PROHIBITED (in part)

A. General Prohibition

No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.

FINDINGS:

Pursuant to an offer of settlement in which Stanislav Govorov neither admitted nor denied the rule violations upon which the penalty is based, on December 20, 2012, a Panel of the CME Business Conduct Committee found that between January 24, 2011, and May 19, 2011, while trading for the benefit of his personal account and the account of another non-member, Govorov executed numerous noncompetitive round turn money pass transactions for his personal account opposite the non-member’s account in the June 2011 New Zealand Dollar and September 2011 Russian Ruble futures contracts for the purpose of transferring $22,450 to his personal account from the non-member’s account. Also, on two occasions between January 24 and January 25, 2011, Govorov noncompetitively executed trades for his personal account opposite the non- member’s account in the September 2011 New Zealand Dollar futures contract, and offset these positions for a profit of $1,050 to his personal account, and a loss of $3,080 to the non-member’s account. The Panel concluded that in so doing, Govorov violated CME Rules 432.G and 539.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Govorov to pay a fine of $25,000. The Panel also barred Govorov for a period beginning on the effective date and lasting seven years from the date the fine is paid in full from applying for membership privileges on any CME Group Inc. exchange, accessing all CME Group Inc. trading floors, and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc.

EFFECTIVE DATE:

December 24, 2012