NOTICE OF DISCIPLINARY ACTION

MEMBER:

Charles Adam

CME RULE VIOLATIONS:

Rule 432 General Offenses (in part)

It shall be an offense:

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange;

...

T. to engage in dishonorable or uncommercial conduct

FINDINGS:

Pursuant to an offer of settlement in which Charles Adam (“Adam”) neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that Adam was subject to the jurisdiction of the Exchange pursuant to Rules 400 and 402, as the conduct occurred while Adam was a CME member. The Panel further found that on one or more occasions between July 1, 2013, and March 26, 2014, Adam entered orders in E-mini S&P 500 futures contracts and E-mini NASDAQ 100 futures contracts on the Globex electronic trading platform during the pre-opening session that were not made for the purpose of executing bona fide transactions. The entry and cancellation of these orders caused fluctuations in the publicly displayed Indicative Opening Price (“IOP”). The Panel concluded that Adam thereby violated CME Rules 432.Q. and 432.T.

PENALTY:

In accordance with the settlement offer, the Panel ordered Adam to pay a fine to the Exchange in the amount of $15,000 and serve a 20 business day suspension of access to any CME Group Inc. trading floor and of direct access to any electronic trading and clearing platform owned or operated by CME Group Inc., including CME Globex. The suspension shall run from April 17, 2015, through May 14, 2015, inclusive.

EFFECTIVE DATE: 

April 17, 2015