CME fines trader for engaging in disruptive practices
CME Group has issued a notice of disciplinary action against Tajgir Rahman, who will have to pay a $200,000 fine for violating CBOT rules.
The Chief Regulatory Officer issued charges against Tajgir Rahman for violating CBOT Rules 432.B.1., 432.B.2., 432.C., 532, 575.A., and 575.B., based on allegations that from July 30, 2019, through September 24, 2020, Rahman entered orders in his employer’s account in several Soybean, Soybean Oil, and Soybean Meal contracts without the intent to trade. Rahman entered orders in his employer’s account with the intent to mislead other market participants and to benefit orders in Rahman’s personal account.
Additionally, between July 20, 2019, and September 24, 2020, Rahman engaged in fraudulent and dishonest conduct. During that time, Rahman executed trades for his personal account while in possession of his employer’s non-public order information, including side of market, size of orders, and price. Rahman profited $10,821.50 as a result of this activity.
A Hearing Panel Chair of the CBOT Business Conduct Committee (BCC) found that Rahman failed to submit a written answer to the charges issued against him and that Rahman was deemed to have admitted the charges. Rahman therefore waived his right to a hearing on the merits of the charges.
Pursuant to CBOT Rule 408.F., a BCC Panel found Rahman guilty of committing the admitted charges and held a penalty hearing thereafter.
Based on the record and the Panel’s findings and conclusions, the Panel ordered that Rahman pay a fine of $200,000 and disgorgement in the amount of $10,821.50.
The Panel also permanently suspended Rahman from direct 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 April 18, 2023.