NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 13-9469-BC

MEMBER:

Philip Alan Mansfield (ITC)

CME RULE VIOLATION[S]:

521. Requirements for Open Outcry Trades (in part)

In open outcry trading, bidding and offering practices must at all times be conducive to the competitive execution of transactions. All open outcry transactions, including spread and combination transactions, shall be made openly and competitively in the pit designated for the trading of the particular transaction. No bid or offer shall be specified for acceptance by a particular trader. Transactions may take place only at the best price available in the open outcry market at the time the trade occurs.

539. Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited (in part)

A. No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction…

FINDINGS:

Pursuant to an offer of settlement in which Philip Alan Mansfield (“Mansfield”) neither admitted nor denied any rule violations upon which the penalty is based, on April 30, 2014, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that it had jurisdiction over Mansfield pursuant to Rules 400 and 402 as the conduct occurred while Mansfield was a member of the Exchange. The Panel further found that on September 11, 2013, Mansfield executed a portion of a customer order that was not bid openly and competitively in the pit and in accordance with CME Rules. Specifically, after he received instructions to buy 20,000 Call Butterfly spreads in the Eurodollar options on futures pit, Mansfield bought 10,000 contracts for the order opposite another broker in the pit, who received opposing order instructions, without openly bidding to the pit, and thereafter had the remaining 10,000 contracts executed for the order openly in the pit. The Panel found that Mansfield thereby violated CME Rules 521 and 539.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Mansfield to pay a $15,000 fine and to serve a 15 business day suspension from membership privileges, access to any trading floor owned or controlled by CME Group, and from accessing the Globex platform or any other trading or clearing platform owned or controlled by CME Group. The suspension shall run from May 2, 2014, through and including May 22, 2014.

EFFECTIVE DATE:

May 2, 2014