David Edward Taylor
CME RULE VIOLATIONS:
Rule 532. Disclosing Orders Prohibited (in part)
No person shall disclose another person's order to buy or sell except to a designated Exchange official or the CFTC, and no person shall solicit or induce another person to disclose order information. An order for pit execution is not considered public until it has been bid or offered by open outcry. No person shall take action or direct another to take action based on non-public order information, however acquired. The mere statement of opinions or indications of the price at which a market may open or resume trading does not constitute a violation of this rule.
Rule 539, Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited (in part)
A. General Prohibition
No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction.
Pursuant to an offer of settlement in which David Edward Taylor (“Taylor”) neither admitted nor denied the rule violations upon which the penalty is based, on December 16, 2015, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that it had jurisdiction over Taylor pursuant to Rules 400 and 402 as the conduct occurred while Taylor was an employee of a CME clearing member firm. The Panel further found that on three occasions between April 2013 and June 2013, after having received customer orders to execute Eurodollar Option on Futures spread transactions, and prior to presenting the orders to the pit, Taylor disclosed the existence of the orders as well as side of market, size and/or price to another employee of an indirect wholly owned subsidiary. In each instance, Taylor then simultaneously placed both his customer’s and the other employee’s orders into the Eurodollar Options on Futures pit for execution at the same price. The Panel concluded that as a result of the foregoing, Taylor violated CME Rules 532 and 539.A.
In accordance with the settlement offer, the Panel ordered Taylor to pay a fine in the amount of $30,000 and to have his access to all CME Group trading floors and direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group suspended for a period of ten business days. The suspension shall run from December 18, 2015, through January 4, 2016, inclusively.
December 18, 2015