NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 11-8395-BC

NON MEMBER:

Craig Anderson
 

CME RULE VIOLATION:

Rule 432. General Offenses

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.

FINDINGS:

Pursuant to an offer of settlement in which Craig Anderson neither admitted nor denied the rule violation upon which the penalty is based, on December 19, 2012, a Panel of the CME Business Conduct Committee (“Panel”) found that Anderson voluntarily submitted to the BCC’s jurisdiction for purposes of settling this matter, and that between April 1 and June 30, 2011, Anderson engaged in a pattern of activity in which he entered mass quotes with incrementally widened spreads between the bid and ask prices in E-Mini S&P options . This activity resulted in aberrant prices being repetitively and publicly disseminated in numerous instruments to the marketplace. Though his aberrant quotes were a result of a flaw in software disseminated by a member firm, Anderson failed to actively monitor the quoting he submitted to the Exchange.

PENALTY:

In accordance with the settlement offer the Panel ordered Craig Anderson to pay a fine of $12,000 and suspended his direct access to any electronic trading or clearing platform owned or controlled by CME Group Inc. for six business days.

EFFECTIVE DATE:

December 21, 2012