NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 13-9259-BC

MEMBER:

SIDNEY RABIN

CME RULE VIOLATION:

432. GENERAL OFFENSES (in part)

It shall be an offense:

G. to prearrange the execution of transaction in Exchange products for the purpose of transferring equity between accounts.

FINDINGS:

Pursuant to an offer of settlement in which Sidney Rabin (“Rabin”) neither admitted nor denied the rule violations upon which the penalty is based, on August 19, 2014, a Panel of the CME Business Conduct Committee (“BCC”) found that it had jurisdiction over Rabin pursuant to CME Rules 400 and 402 as the conduct occurred while Rabin was a CME member, and that between March 16, 2012, and December 21, 2012, Rabin—along with another Exchange member—prearranged the execution of several round-turn transactions in the S&P 500 futures open outcry market opposite the other member’s account. The purpose of the transactions was to transfer funds from the other member’s account to Rabin’s account.

The Panel concluded that Rabin thereby violated CME Rule 432.G.

PENALTY:

In accordance with the settlement offer and after taking Rabin’s financial condition into consideration when it levied the sanction, the Panel barred Rabin from accessing any CME Group Inc. trading floor, and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc. for four months, beginning on the effective date below and continuing through and including December 21, 2014.

EFFECTIVE DATE:

August 21, 2014