NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 12-8852-BC

NON-MEMBER FIRM:

ICAP SECURITIES LIMITED

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 ICAP Securities Limited (“ICAP”), neither admitted nor denied the Rule violation upon which the penalty is based and after voluntarily submitting itself to the jurisdiction of the Exchange for purposes of resolving the matter, on August 22, 2013, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that on November 16, 2011, ICAP executed a 1,500 lot block trade in the June/September/December 2012 Eurodollar Option spread contract, and did not report the trade to the Exchange within five minutes of the time of execution, instead reporting the trade three minutes outside of the required period. The Panel concluded that ICAP thereby violated (Legacy) CME Rule 526.F.

PENALTY:

In accordance with the settlement offer, the Panel fined ICAP $10,000.

EFFECTIVE DATE:

August 26, 2013