(The following is a reformatted version of a press release
issued by The Chicago Mercantile Exchange and received via
electronic mail. The release was confirmed by the sender.)
CME Group - Exchange Disciplinary & Access Denial Actions
CHICAGO MERCANTILE EXCHANGE
NOTICE OF DISCIPLINARY ACTION
FILE NO.: CBOT 11-8064-BC
MEMBER FIRM: RBC CAPITAL MARKETS, LLC
VIOLATIONS: (Legacy) Rule 526 Block Trades (in part)
F. The seller must ensure that each block trade is reported to
the Exchange within five minutes of the time of execution;
except that block trades in interest rate futures and options
executed outside of Regular Trading Hours (7:00 a.m. - 4:00 p.m.
Central Time, Monday - Friday on regular business days) must be
reported within fifteen minutes of the time of execution. The
report must include the contract, contract month, price,
quantity of the transaction, the respective clearing members,
the time of execution, and, for options, strike price, put or
call and expiration month. The Exchange shall promptly publish
such information separately from the reports of transactions in
the regular market.
Rule 432 General Offenses (in part)
It shall be an offense:
I. to make a verbal or written material misstatement to the
Board, a committee, or Exchange employees.
Pursuant to an offer of settlement in which RBC Capital Markets,
LLC (“RBC”), neither admitted nor denied the Rule violations
upon which the penalty is based, on June 24, 2013, a Panel of
the Chicago Board of Trade Business Conduct Committee (“Panel”)
found that on November 4, 2010, RBC executed an inter-commodity
spread block trade in the CBOT U.S. Treasury Note Futures
contracts, and did not report the trade to the Exchange within
the applicable time limit following execution. During the same
time frame, RBC, through its employees, misreported to the
Exchange the true and accurate time of execution of the block
trade. The Panel concluded that RBC thereby violated CBOT
(Legacy) Rule 526.F and Rule 432.I.
In accordance with the settlement offer, the Panel fined RBC
June 26, 2013
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