CME and CBOT Issue Disciplinary Actions

The CME's Business Conduct Committee issued a series of disciplinary actions against a number of individual and institutional traders for various infractions of its rules, including those relating to prearranged and noncompetitive trading, block trades and trade reporting. Two of the actions involved FCMs and are summarized below.

In CBOT 10-7428-BC, the CME imposed a fine of $120,000 against a member firm for violating its block trade rule, Rule 526, by executing a block trade that did not meet the applicable minimum quantity requirement for such a trade: failing to report block trades of Treasury Futures to the Exchange between 2010 and 2012 within the applicable time limit following execution (five minutes); and reporting trades with inaccurate execution times.

In CME 12-8820-BC and CBOT 12-8820-BC, the CME fined another member firm $3000 for misreporting open interest in Live Cattle futures and Australian Dollar futures and failing to correct such misreporting errors by the Exchange's adjustment deadline and, in a separate action, fined the firm for similar reporting errors with respect to 15 markets operated by the CBOT.

See: CBOT 10-7428-BC Credit Suisse; CME 12-8820-BC Newedge; CBOT 12-8820-BC Newedge.