NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Kanat Khussainov

EXCHANGE RULES:

Rule 432. General Offenses

It shall be an offense:

G. to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts;

FINDINGS:

Pursuant to an offer of settlement that Kanat Khussainov (“Khussainov”) presented at a hearing on July 16, 2015, in which Khussainov neither admitted nor denied the findings or the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found that between May 27, 2014 and May 30, 2014, Khussainov executed twenty-three round turn transactions, across all four CME Group Exchanges. The first sixteen round turn transactions transferred $7,049.00 to an account owned by Khussainov from a second account owned by Khussainov’s employer. The remaining seven round turn transactions transferred $4,018.75 from Khussainov’s account back into Khussainov’s employer’s account. The net result of the aforementioned transactions was the transfer of $3,030.25 to Khussainov’s account from his employer’s account.

The Panel found that as a result of the foregoing, Khussainov violated Exchange Rule 432.G.

PENALTY:

In accordance with the settlement offer, the Panel ordered Khussainov to pay a fine to the Exchange in the amount of $15,000. The Panel also suspended Khussainov from all membership privileges and direct or indirect access to any trading floor or electronic trading or clearing platform owned or operated by CME Group Inc., including Globex, for a period of 10 business days. The suspension will run from July 20, 2015 to July 31, 2015. In imposing this sanction the Panel considered the fact that Khussainov repaid his employer the net $3,030.25 he transferred.