NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 12-8761-BC and 13-9579

MEMBER:

Barclays Capital Inc.

CME RULE VIOLATION:

Rule 534. WASH TRADES PROHIBITED
No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

FINDINGS:

Pursuant to an offer of settlement in which Barclays Capital Inc. (“Barclays”) neither admitted nor denied the rule violations upon which the penalty is based, on May 20, 2014, a Panel of the Chicago Mercantile Exchange Business Conduct Committee found that on one or more occasions between July 22, 2011 and October 31, 2011 and on June 28, 2013, Barclays placed buy and sell orders on the CME Group Inc. Globex electronic trading platform that resulted in trades between the same beneficial owners. The Panel found that in doing so, Barclays violated CME Rules 534.

PENALTY:

In accordance with the settlement offer the Panel fined Barclays $42,500.

EFFECTIVE DATE:

May 22, 2014