CME fines, suspends trader for engaging in disruptive practices
International derivatives marketplace CME Group has posted a notice of disciplinary action against Brian Solberg.
Pursuant to an offer of settlement in which Brian Solberg neither admitted nor denied the rule violations or factual findings, a Panel of the Chicago Board of Trade (CBOT) Business Conduct Committee found that from August 30, 2021, through February 25, 2022, Solberg entered orders in December 2021 and March 2022 2-Year T-Note futures markets with the intent, at the time of order entry, to cancel the order(s) before execution.
Specifically, Solberg either entered one large order or several layered orders on one side of the market while he had a smaller order resting on the opposite side of the market. Solberg cancelled his large order(s) shortly after receiving a fill on the smaller resting order.
The Panel concluded that as a result of the foregoing, Solberg violated CBOT Rule 575.A.
In accordance with the settlement offer, the Panel ordered Solberg to pay a fine of $30,000, pay disgorgement of profits in the amount of $20,062.53, and serve a 20-business day suspension from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group, beginning on the effective date below and continuing through and including trade date December 7, 2023.
The disciplinary notice is effective November 9, 2023.