David Rothner and Nancy J. Rothner - Page 3

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          broker as a member of a brokerage association consisting of                 
          petitioner, Richard Lowrance, and Patrick Maloney.  Petitioner              
          initially was employed as an assistant to Mr. Lowrance during               
          1982 and, beginning during 1984 and continuing at least through             
          the end of 1989, worked as an order filler for Mr. Lowrance.                
          Petitioner paid Mr. Lowrance a portion of the commissions                   
          petitioner earned.                                                          
               Petitioner executed orders as a floor broker in a trading              
          pit at the CME.  Customers would signal an order to a clerk, who            
          would bring it to petitioner, and petitioner would attempt to               
          execute it as quickly as possible while obtaining the best price.           
          Petitioner was responsible for the restitution of any money lost            
          by reason of errors made in filling a customer's order, which               
          errors could involve sums from $25,000 to over $100,000.  During            
          busy times, petitioner could have 50 to 100 orders of various               
          types to be executed.  Petitioner might make 200 trades in 1 day.           
          Competition for customers' orders was keen; a broker could lose             
          customers for repeated failures to fill orders on the terms they            
          specified and could attract customers by claiming the ability to            
          provide the best service available.  As many as 300 or 400 others           
          also worked in the pit, and petitioner traded with persons all              
          over the pit, but it was easier to trade with persons near him.             
          Petitioner and the other members of his brokerage association               
          stood together in the pit, and it was therefore easy for them to            
          trade with one another.  Each of petitioner's trades usually                




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