In separate disciplinary actions, the Business Conduct Committees of the Chicago Board of Trade and Chicago Mercantile Exchange (respectively, the "CBOT BCC Panel" and "CME BCC Panel") imposed sanctions, including fines and suspensions, on a firm and individual traders for various trade practice violations.
The CBOT BCC Panel penalized a firm $15,000 for executing an Exchange for Related Position ("EFRP") package in the Ten-Year Treasury Note futures and options market that did not have (i) sufficient price correlation or (ii) opposing market bias among the related position components.
Separately, the CME BCC Panel penalized:
- a trader $25,000 and imposed a 30-day suspension for hindering the CME's investigation regarding potential "violative" messaging activity by allowing individuals to use his Tag 50 User ID to enter orders; and
- a trader a total of $10,000 in fines, in addition to imposing a $1,250 restitution charge and a one-year suspension for (i) failing to transact customer orders at the best trade prices available in the open outcry market and (ii) prearranging and noncompetitively carrying out trades opposite a local.