The International Derivatives Market The CME Group has taken disciplinary action against Brian Sherman.
According to a settlement offer in which Brian Sherman neither admitted nor denied the rule violations or the factual findings on which the penalty is based, a Chicago Board of Trade (CBOT) Business Conduct Committee panel found that as of June 17, 2022, to On July 15, 2022, Sherman entered orders in the July 2022-August 2022, August 2022-September 2022 and September 2022-October 2022 calendar Soybean Oil spreads with the intent of canceling the orders prior to execution.
Specifically, Sherman entered a small order on one side of the market and then entered a large order on the opposite side of the market. Sherman canceled the large order after receiving a fill in the small order. Sherman also entered large orders on one side of the market to move the bid-ask spread. He then hit the bid or raised the bid before canceling the large order. As a result of this activity, Sherman won the amount of $846.
The panel concluded that as a result of the above, Sherman violated CBOT Rule 575.A.
Under the settlement offer, the panel ordered Sherman to pay a $15,000 fine, forfeiture of earnings of $846, and serve a 45-business day suspension from accessing any trading venue owned or controlled by CME Group and from directly and indirectly accessing on any designated contract market, derivatives clearing house or swap execution facility owned or controlled by CME Group, continuing through the trade date of June 14, 2024.