NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

Wesley Johnson

CME RULE VIOLATION:

Rule 575 DISRUPTIVE PRACTICES PROHIBITED

All orders must be entered for the purpose of executing bona fide transaction. 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 an 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 Wesley Johnson (“Johnson”) neither admitted nor denied the rule violation upon which the penalty is based, on September 23, 2020, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that on multiple dates between March 1, 2017, and July 31, 2017, Johnson entered large orders in the April 2017, June 2017, August 2017, October 2017, December 2017, and April 2018 Live Cattle, and in the June 2017, July 2017, August 2017, October 2017, December 2017 and February 2018 Lean Hogs futures markets without the intent to trade. Specifically, he entered the larger orders to obtain fills on smaller orders he entered that were resting on the opposite side of the order book. After receiving a fill on the smaller order, Johnson canceled the large orders. The Panel concluded that Johnson thereby violated CME Rule 575.A.

PENALTY:

In accordance with the settlement offer, the Panel ordered Johnson to pay a $35,000 fine. The Panel also suspended Johnson from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group for 4 months, beginning on the effective date below and continuing through and including January 30, 2021.

EFFECTIVE DATE:

September 30, 2020