NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 12-9024-BC

NON MEMBER:

George Neblett

CME RULE VIOLATIONS:

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 a person to exceed the applicable position limits shall be in violation of this rule.

FINDINGS:

Pursuant to an offer of settlement in which George Neblett (“Neblett”) neither admitted nor denied the rule violation upon which the penalty is based and after voluntarily submitting himself to the jurisdiction of the Exchange for purposes of resolving this matter, on August 15, 2013, a Panel of the CME Business Conduct Committee found that, on August 14, 2012, while trading in the August 2012 Live Cattle futures contract, Neblett exceeded the speculative position limit in a single month of 450 contracts by 105 contracts or
approximately 23% as a result of Neblett’s broker being unaware of the fact that position limits are applicable on an intraday basis. Neblett’s positions were reduced to a permissible level within 11 minutes of the violation occurring. The Panel found that by exceeding the position limit on August 14, 2012, Neblett violated CME Rule 562.

PENALTY:

In accordance with the settlement offer, the Panel ordered Neblett to pay a fine of $20,000.

EFFECTIVE DATE:

August 19, 2013