NOTICE OF DISCIPLINARY ACTION

FILE NO.:

COMEX 11-8567-BC

NON-MEMBER:

Scott Elkovitch

COMEX RULE VIOLATIONS: 432. GENERAL OFFENSES

It shall be an offense:

B.2. to engage in conduct or proceedings inconsistent with just and equitable principles of trade;

T. To engage in dishonorable or uncommercial conduct.

FINDINGS:

Pursuant to an offer of settlement in which Scott Elkovitch (“Elkovitch”) neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee found Elkovitch voluntarily submitted himself to the jurisdiction of the BCC for purposes of settling this matter. The Panel further found that between April 1, 2011, and September 30, 2011, Elkovitch used the discretion he had over customer accounts for the benefit of his personal trading account.

Specifically, Elkovitch placed stop orders on the same side of the market for both his personal account and his customer(s)’ account(s), as well as a liquidating limit order for his personal account. In each instance, his personal stop order had priority over at least one of his customer’s stop orders. When the stop orders were triggered, the momentum resulted in the execution of his liquidating order at a profit to his personal account. The Panel concluded that in so doing, Elkovitch violated COMEX Rules 432.B.2. and 432.T.

PENALTY:

In accordance with the settlement offer, the Panel ordered Elkovitch to pay a fine of $32,500 and disgorgement of $23,847. The Panel also suspended for 25 business days, Elkovitch’s access to all CME Group Inc. trading floors, and indirect and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc.

EFFECTIVE DATE:

November 10, 2014