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The Chicago Board of Trade Business Conduct and the Chicago Mercantile Exchange Committees (respectively, the "CBOT BCC Panel" and "CME BCC Panel") fined and suspended multiple traders and companies for various trade practice violations.
The CBOT BCC Panel imposed penalties on:
- two traders $20,000 and $25,000, separately, for entering and canceling (see here and here) orders in soybean futures contracts without planning on trading the orders (a/k/a "spoofing"); and
- a company $15,000 for conducting an Exchange for Related Position ("EFRP") package transaction that (i) neither had a "reasonable degree" of price correlation nor an opposing market bias and (ii) was not reasonably equivalent to the Exchange component, making the EFRP package non-bona fide.
The CME BCC Panel ordered:
- a company to pay a fine of $15,000 and disgorge $10,415 for holding a futures equivalent long position that exceeded the spot-month position limit in effect by 19 futures contracts; and
- a trader to pay a fine of $15,000 for (i) executing trades that were prearranged and noncompetitive, opposite another broker in certain options, and (ii) raising the quantity on a trade but not executing the additional quantity in the market.
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