Howard Stark, a member of the Chicago Mercantile Exchange, was fined US $90,000 and permanently barred from being a member or accessing for trading any CME Group exchange for engaging in numerous market and other offenses from September 26, 2013, through April 9, 2014. According to the CME, during this time, among other things, Mr. Stark purchased and sold orders for a customer when he knew or reasonably should have known that the customer was trying to avoid taking a bona fide market position. Moreover, Mr. Stark was accused of knowingly misallocating the sell side of these transactions on two occasions in order to avoid maintenance margin requirements. Additionally, during the time, said CME, Mr. Stark also failed to submit trading cards on the original trading date for processing, as required; increased the quantity of a trade without competitively executing the additional quantity; and permitted his unique Globex identification to be used by another person to access Globex, among other violations. The CME business conduct committee hearing this matter deemed all accusations against Mr. Stark admitted when he failed to answer charges against him.
Separately, Markus Groebner, a nonmember, was assessed a fine of US $50,000 and suspended from becoming a member or accessing any CME Group exchange for trading for three years for entering orders on multiple occasions during pre-open trading periods that were not entered to achieve bona fide transactions.