- 5 -
member trading for his own account. Petitioner would, for
instance, sell futures contracts to Mr. Elliott, and another
member of petitioner's brokerage association would buy the same
contracts from Mr. Elliott. The trades were executed at market
prices, and Mr. Elliott was not paid for accommodating
petitioner's brokerage association. Trading through Mr. Elliott
was "helpful" to petitioner's business.
The CME's rules allow it to conduct disciplinary proceedings
against its members for violations of its rules and to impose
sanctions on its members if violations are found to have
occurred. Enforcement of the CME's rules is generally conducted
through investigators employed by it and a committee with
authority to bring charges of violations, to conduct hearings,
and to impose punishment. Disciplinary violations may result in
sanctions which may include monetary fines, suspension of trading
privileges, or expulsion. When the CME conducts disciplinary
proceedings involving any of its members or takes disciplinary
action against any of them, it does not act as an agency or agent
of any government.
During September 1987 through March 1988, CME employees
monitored the floor brokerage activity of petitioner's
association, including the portion of its members' trades
involving Mr. Elliott. As a result, during 1989, the CME
conducted disciplinary proceedings against petitioner, Mr.
Lowrance, Mr. Maloney, and Mr. Elliott. The transactions on
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011