NOTICE OF DISCIPLINARY ACTION

MEMBER:

Citadel Securities LLC

CME RULE VIOLATIONS:

Rule 432 (“General Offenses”) (in part)

It shall be an offense:

Q. to commit an act which is detrimental to the interest or welfare of the Exchange or to engage in any conduct which tends to impair the dignity or good name of the Exchange.

FINDINGS:

Pursuant to an offer of settlement in which Citadel Securities LLC (“Citadel”) neither admitted nor denied the rule violations upon which the penalty is based, on March 19, 2015, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that it had jurisdiction over Citadel pursuant to Rules 400 and 402 as the conduct occurred while Citadel was a CME member, and during an approximately one-minute period on June 3, 2013, Citadel entered a series of unintentional orders on the Globex electronic trading platform. This unintentional order entry activity was caused by a software malfunction in a server that Citadel used to route orders to the Exchange. As a result of this malfunction, Citadel resent to the Exchange for execution orders that had previously been filled, which in turn caused an atypical short-term increase in trading volume and impacted the price in the E-mini S&P Futures market.

The Panel concluded that Citadel thereby violated CME Rule 432.Q.

PENALTY:

In accordance with the settlement offer, the Panel ordered Citadel to pay a fine of $70,000.

EFFECTIVE DATE:

March 23, 2015