NOTICE OF DISCIPLINARY ACTION

FILE NO.:

CBOT-16-0547-BC

MEMBER:

Richard Whitlow

CBOT RULE VIOLATION:

575. Disruptive Practices Prohibited (in part)

All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes.

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 Richard Whitlow neither admitted nor denied the rule violation upon which the penalty is based, on January 23, 2018, a Panel of the Chicago Board of Trade Business Conduct Committee (“Panel”) found that on multiple occasions between December 1, 2015, and August 15, 2016, Whitlow entered bids and offers on the Globex electronic trading platform during the pre-open period in various CBOT grains and oilseeds futures contracts, which were not entered for the purpose of executing bona fide transactions. The entry and subsequent cancelation of these orders caused fluctuations in the publicly displayed Indicative Opening Price. The Panel concluded that Whitlow thereby violated CBOT Rule 575.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Whitlow to pay a fine to the Exchange 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. The suspension shall run from January 25, 2018, through February 23, 2018, inclusive.

EFFECTIVE DATE:

January 25, 2018