NOTICE OF DISCIPLINARY ACTION

FILE NO.:

COMEX 10-04-BC

MEMBER:

JEAN MARRONE (JNIE)
 

(LEGACY) COMEX RULE:

104.31 Dual Trading

(a) Prohibited Transactions

(ii) Except to the extent provided in Rule 104.31(b) (“Dual Trading-Permissible Transactions”), a floor member may not sell any futures contract or futures call option or purchase any futures put option in a commodity for his own account or for any account in which he has any direct or indirect interest while holding an order of another person for the sale of a futures contract or futures call option or for the purchase of any futures put option in the same commodity which is executable at the market price or at the price at which such purchase can be made for the member’s own account or for the account in which such member has an interest.
 

(LEGACY) EXCHANGE RULE:

8.55 Classification of Offenses

(A) Major Offenses: No Member, Member Firm, or any employee of the foregoing shall commit a violation of any of the following rules, which shall be deemed major offenses of the Exchange[:],

(2) to be guilty of fraud or any act of bad faith;

FINDINGS:

Pursuant to an Offer of Settlement in which Jean Marrone (also known as broker “JNIE”) neither admitted or denied the findings or any rule violations, a panel of the COMEX Business Conduct Committee (hereinafter known as the “BCC Panel”), found that Jean Marrone engaged in dual trading and in fraud and acts of bad faith on June 5, 2008, in violation of legacy COMEX Rule 104.31(a)(ii) and Exchange Rule 8.55(A)(2). On August 12, 2010, Jean Marrone and the Market Regulation Department presented a joint settlement offer to the BCC Panel, with respect to violations of Exchange Rules. The BCC Panel accepted the settlement offer.

PENALTY:

In accordance with the settlement offer, the BCC Panel hereby orders that Jean Marrone: (1) pay a fine to the Exchange in the amount of $10,000; (2) agree to a suspension of membership and clerk privileges, including access to any CME Group trading floor and direct access to any CME Group electronic trading or clearing platforms for a period of two weeks, starting the first business day after the effective date; and (3) an order to cease and desist from subsequent similar rule violations. The decision became final on August 20, 2010 and effective on August 27, 2010.

Her suspension shall run from August 30, 2010 through September 13, 2010.
 

EFFECTIVE DATE:

August 27, 2010