NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CME 15-0329-BC

MEMBER:

Robert P. Overholt

CME RULE VIOLATION:

Rule 575. A. Disruptive Practices Prohibited (in part)

A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution;

FINDINGS:

Pursuant to an offer of settlement in which Robert P. Overholt (“Overholt”) neither admitted nor denied the rule violation upon which the penalty is based, on November 29, 2017, a Panel of the Chicago Mercantile Exchange Business Conduct Committee found that on multiple occasions between October 12, 2015, and December 8, 2015, Overholt entered orders in the Live Cattle futures contract markets without the intent to trade those orders. The Panel specifically found that Overholt’s trading strategy involved placing a large order on one side of the market without the intent to trade, opposite a single small order on the other side, and canceling the larger order after the smaller quantity traded.

The Panel concluded that Overholt thereby violated CME Rule 575.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Overholt to pay a fine in the amount of $25,000 and to serve a 30-day suspension from accessing any CME Group Inc. trading floor and all direct and indirect access to all electronic trading and clearing platforms owned or controlled by CME Group Inc., including CME Globex. The suspension shall run from December 1, 2017, through December 30, 2017, inclusive.

EFFECTIVE DATE:

December 1, 2017