CME Group Disciplinary Measures: Brian Solberg Fined and Suspended

1 min

In a recent development in the world of financial derivatives, the international derivatives marketplace, CME Group, has revealed disciplinary action against Brian Solberg. This information was disclosed in a notice where Solberg neither confirmed nor refuted the violations or factual findings.

A Panel of the Chicago Board of Trade (CBOT) Business Conduct Committee discovered that between August 30, 2021, and February 25, 2022, Solberg engaged in questionable trading activities. These involved the placement of orders in December 2021 and March 2022 2-Year T-Note futures markets with the initial intent to cancel them before execution.

To elaborate, Solberg’s strategy consisted of placing either a single large order or multiple layered orders on one side of the market while simultaneously having a smaller order pending on the opposite side. Shortly after the smaller order was executed, Solberg would cancel the larger ones.

The Panel reached the conclusion that these actions were in breach of CBOT Rule 575.A.

As part of the settlement agreement, the Panel imposed several sanctions:

  • A penalty of $30,000
  • Disgorgement of profits amounting to $20,062.53
  • A 20-business day suspension from any CME Group trading floor or any other platform owned or controlled by the CME Group.

This suspension also extends to both direct and indirect access to any designated contract market, derivatives clearing organisation, or swap execution facility owned or controlled by the CME Group. The suspension commences on the effective date below and will continue through to, and inclusive of, the trade date December 7, 2023.

Punitive Measures Details
Monetary Fine $30,000
Disgorgement of Profits $20,062.53
Suspension Duration 20 business days

Brian Solberg’s case serves as a reminder of the stringent regulations in place within the financial derivatives market and the consequences of non-compliance.