NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

First Trust Advisors LP

CME RULE VIOLATION:

Rule 562. Position Limit Violations (in part)

Any position in excess of those permitted under the rules of the Exchange shall be deemed position limit violations.

FINDINGS:

Pursuant to an offer of settlement in which First Trust Advisors LP (“FTA”) neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on September 6, 2023, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that at the close of trading on October 18, 2022, FTA held a long position of 6,422 contracts in December 2022 Lean Hogs futures, which was 422 contracts (7.03%) over the single-month position limit. On October 19, 2022, FTA increased its long position to 6,463 contracts in December 2022 Lean Hog futures, which was 463 contracts (7.72%) in excess of the position limit. FTA liquidated its overage to bring its position into compliance, which resulted in a profit of $31,938.

The Panel concluded that FTA thereby violated CME Rule 562.

PENALTY:

In accordance with the settlement offer, the Panel ordered FTA to pay a $15,000 fine and to disgorge profits in the amount of $31,938.