International derivatives marketplace CME Group has published a notice of disciplinary action against Southern Star Shipping Co., Inc.

Pursuant to an offer of settlement in which Southern Star Shipping Co., Inc. neither admitted nor denied the rule violations or factual findings upon which the penalty is based, a Panel of the Chicago Board of Trade (CBOT) Business Conduct Committee found that on June 29, 2023, an employee of Southern Star entered sell orders in July 2023 Wheat futures contracts and directed a broker to place buy orders in the same contract for accounts with common beneficial ownership at prices that ensured the orders matched opposite each other.

The employee executed the trades in this manner in order to transfer positions between entities and reasonably should have known that entering orders in this manner would produce a wash result. Additionally, the Panel found that Southern Star failed to diligently supervise its employee by

failing to properly advise, educate, and train its employee as to relevant Exchange Rules and Market Regulation Advisory Notices (MRANs) in a manner sufficient to ensure compliance with the same.

The Panel concluded that Southern Star thereby violated CBOT Rules 534 and 432.W.

In accordance with the settlement offer, the Panel ordered Southern Star to pay a $30,000 fine.

The disciplinary notice is effective May 2, 2025.