NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 12-8900-BC

MEMBER:

JAMES YADGIR
 

CME RULE VIOLATION:

Rule 562. (“POSITION LIMIT VIOLATIONS”) (in part)

Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations. Additionally, any person making a bid or offer that would, if accepted, cause such person to exceed the applicable position limits shall be in violation of this rule.

FINDINGS:

Pursuant to an offer of settlement in which James Yadgir (“Yadgir”) neither admitted nor denied the rule violation upon which the penalty is based, a Panel of the CME Business Conduct Committee found that on trade date May 23, 2012, Yadgir carried an aggregate futures equivalent net position in May 2012 Feeder Cattle futures and options of 381.759 contracts short. This position exceeded the speculative position limit in the spot month during the last ten days of trading of 300 contracts by 81.759 contracts, or 27.25%. On trade date May 24, 2012, Yadgir liquidated 89 contracts for a loss, resulting in an aggregate futures equivalent net position in May 2012 Feeder Cattle futures and options of 300.152 contracts short. However, this position still exceeded the speculative position limit in the spot month by .152 contracts, or .05%. As a result, Yadgir went through expiration with a position exceeding the spot month speculative position limit.

PENALTY:

In accordance with the settlement offer, the CME Business Conduct Committee Panel fined James Yadgir $28,000.

EFFECTIVE DATE:

October 26, 2012